Squid Protocol raised $3.5M to increase its supported chains
Squid, an Axelar-based protocol that connects users and developers with cross-chain liquidity, just completed its $3.5 million seed round, which was led by North Island Ventures. The newly acquired funding will assist Squid in growing the team and adding more supported chains.
Participating in the round were well-known cryptocurrency investment companies Distributed Global, Fabric Ventures, Galileo, Chapter One, and Node Capital. Dean Eigenmann, Waikit Lau, Stani Kulechov, Zaki Manian, Ashleigh Schap, and a couple of others were angel investors. As a strategic investment, Axelar also partook in the round. Squid was one of the first projects to be funded after the cohort of Axelar Developer Grants in addition to this seed investment.
Commenting on the potentials of Squid, Travis Scher, co-founderNorth Island Ventures revealed that the company is thrilled to support the excellent team at Squid, which is constructing crucial infrastructure to realize this vision for the future of cryptocurrency. He added that they believe the future of crypto is multi-chain and cross-chain.
Speaking on this funding and Squid’s vision, the co-founder of Axelar, Sergey Gorbunov, revealed that the necessity for safe decentralized alternatives has been underlined by the epic failures of centralized trading platforms. He added that “Squid powers this future by enabling decentralized, secure, simple-to-use and use of cross-chain swaps. The Squid team has extensive experience in the space and we’re excited to see them build on the Axelar Network.”
The Axelar network, which was unveiled in 2021, is a network of interconnected blockchains that enables cross-chain communication. Squid offers cross-chain liquidity that expands the user base of decentralized exchanges (DEX) without the security risks associated with cross-chain bridges.
How does Squid work?
Squid derives its speed and security from General Message Passing and Axelar’s safe cross-chain communication platform, which means that Squid’s contracts support additional cross-chain functionality. With Squid, users can build payments to any chain, buy NFTs on any chain with any asset, deposit money into a margin account on a decentralized derivatives market, or make wallets chain-independent.
The Squid protocol hooks into existing liquidity on DEXs on supported chains to facilitate cross-chain swaps, a type of smart contract technology that permits the exchange of tokens between two different blockchains. Squid provides an application programming interface (API), a software development kit (SDK), as well as a widget that may be customized.
EVM and Cosmos chains are among the 25 blockchains that Squid supports. Cosmos has witnessed tremendous growth and adoption since the realization of its app chain thesis. From any environment, Squid provides the simplest onboarding process for new Cosmos chains. Ackee Blockchain and Consensys Diligence each conducted four audits on Squid.
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