What You Need to Know About Axelar Network

In this edition, we’re giving you in-depth insights on projects building in the Options and crosschain verticals.

Learn about Axelar’s approach to crosschain scaling, and how Squid is using this infrastructure to connect Cosmos and Ethereum rollups.
Dive deep into Dopex and Premia Finance, two players building out decentralized options products.

Stay alert, stay informed ⬇️

1/ OATH – Introduction to Axelar Network and Squid

Preview: Charles, Samson, Jason, and Fig introduce Axelar and Squid, and discuss the features of the protocols and future plans. Click here to listen to the full episode (53 mins).

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Here are some key takeaways:

Axelar Network is a protocol that delivers secure cross-chain communication for Web3.
Jason says that there are three layers to Axelar:The first is the proof-of-stake network layer. This is the foundational layer that secures the network and validates transactions. The second is the APIs and SDKs layer. This layer is for developers, providing the tools needed to build interchain (between different blockchains) applications.The third is the services layer. This includes services like gas service and relayer service, which facilitate transactions and interactions on the network.
The first is the proof-of-stake network layer. This is the foundational layer that secures the network and validates transactions.
The second is the APIs and SDKs layer. This layer is for developers, providing the tools needed to build interchain (between different blockchains) applications.
The third is the services layer. This includes services like gas service and relayer service, which facilitate transactions and interactions on the network.
Jason emphasizes that Axelar’s fully decentralized and permissionless validator set makes it more secure than centralized bridges. The validators are responsible for maintaining the integrity of the bridge and ensuring that the asset transfers occur correctly.
Jason shares that Axelar is launching a new product called Interchange Token in the third week of July. This product will allow anyone to create a cross-chain token within a few clicks, without needing to know any code or do any smart contract work.
He also says that in Q3, they are launching the Axelar Virtual Machine, a programmable smart contract layer on top of the Axelar blockchain. By the end of the year, Axelar aims to be connected to all major chains, making it a one-stop shop for developers wanting to connect to any chain.

Squid is a protocol that allows any token to be swapped between blockchains and unlocks access to apps across chains in a single click.
Fig says that Squid uses Axelar’s general message passing to combine decentralized exchanges (DEXs) across chains. Squid can facilitate trades across different blockchains by communicating with different DEXs through Axelar. It allows users to trade assets across different blockchains, which would not be possible without a cross-chain solution like Axelar.
Fig adds that they generally work with DEXs that have forked from major protocols. This is likely due to the proven reliability and security of these major protocols, which can be carried over to their forks. However, Fig also states that they are open to working with anyone after conducting their due diligence and assessing liquidity. Liquidity is a key factor in trading as it affects the ease and speed at which assets can be traded.
Fig says that Squid is planning to connect to the Cosmos ecosystem soon, which will make the entire ecosystem available from the Ethereum roll-ups and other EVM chains. He is excited about the potential for new partnerships between Cosmos projects and the EVM world, as well as the launch of new roll-ups.
Fig says that there is the possibility of Squid plugging into the fiat system, allowing users to go from any fiat to any token or NFT.

2/ Premia Finance Twitter Space – Dope DeFi Options Chat with Dopex

Preview: vxCozy from Premia Finance hosted 0xSaitama from Dopex to discuss Dopex, Premia, Evolution, and competition between DeFi options protocols, the strong community for traders, Scalps v2 release, and more! Click here to listen to the full episode (61 mins).

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Here are some key takeaways:

Dopex is a Decentralized Options Exchange that uses blockchain technology to provide permissionless and non-custodial access to options trading.
0xSaitama talks about Dopex’s growth from simple vanilla options to more broad products, including straddles structured products and 0DTE options, and highlights the recently launched Scalps v2. The Scalps v2 option scales with volume, making it cheaper as more volume flows through it. These options can be leveraged up to 110x, catering to more risk-taking traders.
0xSaitama explains that the Scalps v2 options work on a timed model, rather than a funding model, which can make them more affordable than other perpetual platforms. This model also protects liquidity providers (LPs) by ensuring traders can’t keep positions open indefinitely.
He explains how the Scalps v2 model works. USD deposits are used for long positions and Arbitrum token deposits are used for short positions. They are put into Uniswap V3 and traded when a limit order is met. Traders don’t risk losing money, so it’s a popular way for them to earn profits.
0xSaitama announces an upcoming competition for Dopex users, where prizes will be awarded for the best P&L and the most volume. vxCozy specifies that the competition is about Scalps v2 choices.

Premia Finance is a decentralized options market based on a pool-to-peer architecture for options.
vxCozy mentions Premia is preparing to launch their Premia V3 options. They also have a current trading competition with prizes for participants who complete certain actions, such as providing liquidity and purchasing options.
vxCozy explains that Premia’s V3 introduces concentrated or range order liquidity and permissionless pooling. Underwriters can now select specific ranges for underwriting options. Other new features include a vault layer, an RFQ network, and a margin layer. They also plan to introduce strategy-specific vaults alongside underwriter vaults.
0xSaitama asks DK about future plans after releasing Premia V3.
DK mentions their plans for an isolated margin scheduled towards the end of summer and possibly a mobile app. They are also considering expansion beyond options, working on additional complimentary products.
0xSaitama asks about user acquisition strategies, and Premia’s efforts to educate retail customers about options. He mentions their academy as one such initiative.
vxCozy mentions the academy’s course content aimed at demystifying options. He highlights the real competitor is traditional finance and their goal is to get people to use DeFi products and trade DeFi options. He highlights their collaborative stance with other options protocols in the DeFi space.

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