What is Axelar (AXL)?

Deep Dive

1. Purpose & Value Proposition

Axelar solves blockchain fragmentation by enabling developers to build cross-chain applications. Its network allows users to move assets (e.g., XRP, BTC) and data between Ethereum, Cosmos, XRPL, and others without centralized intermediaries. This addresses liquidity silos and expands DeFi accessibility (Cryptobriefing).

2. Technology & Architecture

Built with the Cosmos SDK, Axelar employs a Delegated Proof-of-Stake (DPoS) consensus. Validators secure the network by running nodes that verify cross-chain transactions. Key innovations include:
- General Message Passing (GMP): Allows smart contracts on different chains to interact.
- Squid Router: A cross-chain liquidity layer enabling token swaps across chains.

3. Ecosystem Fundamentals

Axelar’s infrastructure supports institutional and retail use cases:
- XRPL EVM Sidechain: Axelar bridges XRP to Ethereum-compatible chains, enabling XRP as gas for DeFi apps (The Block).
- mXRP: A yield-bearing XRP token issued via Axelar, locking XRP to generate DeFi returns.

Conclusion

Axelar positions itself as a critical interoperability layer for the multi-chain future, balancing institutional-grade security with developer-friendly tools. With partnerships spanning Ripple, Midas, and Crypto.com, its role in cross-chain liquidity and DeFi innovation is expanding. How will Axelar adapt as competing protocols like Wormhole and LayerZero scale?