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Squid Unveils CORAL: A Groundbreaking Decentralized

Squid Unveils CORAL: A Groundbreaking Decentralized

In an effort to offer enhanced efficiency and cost-effective solutions for cross-chain swaps, Squid, a prominent player in the decentralized finance space, has introduced a novel decentralized intent-based liquidity protocol. Officially named as the Cross-Chain Order Routing and Auction Layer (CORAL), this protocol has been launched today with an aim to provide users with the ability to execute swaps across chains at minimal costs, and with near-instant finality.

Employing a request-for-quote (RFQ) system, CORAL’s intents are designed to handle swaps natively, thereby unlocking market maker order book pricing akin to CoWSwap. This innovative approach not only eliminates slippage but also guarantees optimal execution by engaging directly with liquidity providers throughout the transaction process.

Elucidating on the core concept, Fig, co-founder of Squid, stated, “With CORAL, we’ve removed the borders between chains, permitting liquidity to flow with minimal friction.” The protocol is a progressive addition to the successful Squid 2.0 upgrade, which was primarily aimed at simplifying complex cross-chain transaction flows involving multiple hops.

A key feature of CORAL is its resemblance to a zk rollup, where the cost for the end-user decreases with the influx of more transactions. The architectural design enables batching of intents, leading to significant gas savings and offering users the best possible execution for their swaps. Fig asserted this feature makes CORAL the “cheapest decentralized intent protocol” in the market, even outperforming leaders like Across Protocol.

While Across Protocol relies on intricate cryptographic batching processes, CORAL adopts Axelar’s secure general message-passing protocol. This method transfers all bridge and routing risks to market makers, who handle the intricate backend processes of asset transfers. Users are provided with native assets on their destination chain, eliminating the need for wrapped tokens or reliance on external validators.

Beyond swaps, CORAL offers developers the flexibility to create intricate DeFi applications using pre- and post-hooks, which can facilitate actions like depositing cross-chain-swapped assets into yield farms with a single click.

Having launched on major chains like Ethereum, Arbitrum and Base, the protocol’s integration with Solana, Sui, and Aptos is scheduled for January, with Cosmos-based chains through IBC set to be integrated later in 2025. Future plans also include the capability to aggregate multiple messaging protocols, like Hyperlane, to add support for another 40-50 EVM-compatible blockchains, creating a “network of networks” to significantly enhance interoperability.

Overall, with the introduction of CORAL, Squid is making significant strides towards true chain abstraction, enabling users to interact with assets seamlessly, regardless of their originating chains. “Cross-chain swaps are now as cheap as single-chain swaps, so we can really move toward full chain abstraction, where users don’t need to think about which chain their assets are on,” Fig concluded.

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