Axelar has launched the Interchain Token Service (ITS), a solution designed to enhance the interoperability of ERC-20 tokens on all Ethereum Virtual Machine (EVM) compatible chains.
Early adopters of the service include a decentralized exchange (DEX), aims to utilize ITS to facilitate its native seamless interaction Across multiple blockchain networks.
Promote cross-chain integration with ITS
Axelar’s ITS is primarily focused on the interoperability of ERC-20 tokens across all EVM compliant ecosystems.These tokens are generated on a 1:1 basis and are , the Axelar virtual machine. The newly launched service aims to give a much-needed boost to token interactions on Ethereum-compatible chains.
Decentralized exchange Sushi will be one of the first adopters of the “interchain tokens” offered through the service. Sushi’s team plans to use ITS to facilitate the seamless interaction of its native SUSHI token across multiple chains.Initial deployment will ensure SUSHI interoperability , , and . The move will allow Sushi’s decentralized exchange, SushiSwap, to more efficiently manage its multi-chain deployment through the Axelar network.
Sushi’s head chef, Jared Gray, emphasizes the practicality of the service, saying:
“Axelar’s inter-chain token service brings a more seamless inter-chain experience to Sushi users.”
Meeting Security and Compatibility Challenges
Traditional approaches to facilitate cross-chain transfer of Web3 applications typically rely on bridging token versions. These bridged versions may face inherent security risks and compatibility issues. Axelar’s interoperability solution addresses these challenges, says co-founder Sergey Gorbunov.
Gorbunov noted that Axelar’s innovative approach leverages specialized smart contracts and software development kits to enable developers to manage interchain tokens more efficiently.
Notably, Gorbunov said the bridged version of the token, similar to , currently lacks fungibility and presents bridge risk. In contrast, interchain tokens represent “true” cross-chain interoperability, combining security and simplicity.
The news comes after Axelar announced a partnership with Chainlink’s cross-chain interoperability protocol.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.