Squid, a protocol specializing in cross-chain swaps, has expanded its services to facilitate liquidity routing and token swaps across Ethereum blockchain, various Ethereum Virtual Machine blockchains and the Cosmos ecosystem.

Before the expansion, Squid was already facilitating swaps within major EVM blockchains like Ethereum, Arbitrum, Optimism and Base. It also provided a similar service for the Cosmos ecosystem independently, but kept it separate from its EVM ecosystem.

By integrating Axelar Network and adopting the Cosmos Inter-Blockchain Communication (IBC) protocol, along with a partnership with the decentralized exchange network Osmosis, Squid has broadened its capabilities to encompass tokens swaps across both EVM and Cosmos blockchain ecosystems simultaneously.

In January, Squid raised a $3.5 million seed round led by North Island Ventures.

Squid's cross-chain swap protocol

Transferring assets between EVM and Cosmos blockchains can be complex due to their inherent incompatibility. Squid, which is built on the Axelar Network, seeks to address this issue.

Squid uses Axelar’s General Message Passing (GMP) technology in conjunction with the IBC protocol. The combination enables the transport of both tokens and smart contract logic between the Cosmos and EVM ecosystems.

"By making cross-chain token swaps among both Cosmos and EVM blockchains trivial, Squid extends this vision of interoperability and lowers the barrier to economic collaboration across these ecosystems," said Fig, the pseudonymous co-founder of Squid.