Morpho (MORPHO) is an efficient Ethereum-based protocol revolutionizing decentralized lending with customizable peer-to-peer and pool-based solutions.

Liquidity pools have revolutionized decentralized lending and borrowing by offering a wide choice of product options and significant liquidity levels. For several years, protocols like 

 (COMP) have been lauded as true innovators that introduced a real game-changer: pool-based lending and borrowing. However, a closer look reveals that things aren’t as efficient and smooth as they may seem within the world of crypto lending. The problem is that lending pools on decentralized protocols often have mismatches between lenders and borrowers, with the former substantially outnumbering the latter. As a result, lenders earn only meager 

s, while borrowers pay exorbitant fees to access funds via these pools. Another critical problem is the lack of customizability in lending and borrowing products, with many protocols adopting a one-size-fits-all approach.

Morpho (MORPHO) is a decentralized protocol on 

 (ETH) that aims to improve the efficiency and flexibility of crypto lending and borrowing by offering a unique model that combines the elements of 

 (P2P) and pool-based matching of lenders and borrowers. To be precise, one of Morpho's essential products, Morpho Optimizers, specifically focuses on P2P matching, with pool-based lending and borrowing used as a fallback option. Morpho also offers users an excellent level of customization for creating new lending markets through its core protocol.

With its innovative lender-borrower matching mechanism and highly customizable and flexible markets, Morpho greatly improves capital allocation and transaction efficiency in the 

 (MORPHO) is an Ethereum-based decentralized lending protocol that offers a unique P2P order matching mechanism to improve the efficiency and affordability of 

 The platform also enables users to create efficient lending markets with highly customizable lending and borrowing parameters. Additionally, it offers a product, Morpho Vaults, for curated lending at varying risk levels.

, a France-based software development company founded in 2021 by Merlin Egalité and Paul Frambot. It's also supported by the nonprofit 

As its first major product, the project launched Morpho Optimizers on the Ethereum blockchain in 2022. Morpho Optimizers is designed as an add-on solution for lending pools on Aave and Compound to help match individual lenders and borrowers. The transacting parties can benefit from a more efficient lending process than with the default pool-based mode.

In January 2024, the project launched Morpho Blue, later rebranded to Morpho, a solution to help users create highly flexible lending markets with custom parameters and options. Morpho acts as the backbone of the Morpho ecosystem, and the project team has turned its focus to promoting and further developing this product. At the same time, Morpho Optimizers remains an integral part of the platform's core offering, albeit in a less prioritized state than Morpho.

The Morpho protocol consists of three main products — Morpho, Morpho Vaults (based on the underlying protocol) and the legacy Morpho Optimizers. Morpho allows users to create individual lending markets by specifying their preferred options for the following key attributes:

All these parameters are highly customizable, with minimal interference from the Morpho governance mechanism. Some parameters do have to conform to certain requirements; e.g., the IRM and LLTV must be from the list approved by the protocol's governance.

Morpho's high level of customizability is a significant departure from the typical model used on decentralized lending and borrowing platforms. On most other protocols, there are fixed parameters governing the lending and borrowing process; e.g., only certain collateral assets, lending assets or LLTV rates are allowed. In contrast, Morpho lets you customize all of these options, giving lending market creators an unmatched degree of freedom. The protocol offers the following key benefits to users, developers and market operators:

While Morpho is currently the platform's flagship product, the legacy Morpho Optimizers continues as a key offering in the platform's product line. Morpho Optimizers are add-on layers to the Aave and Compound lending pools. They can be used to facilitate a peer-to-peer match between lenders and borrowers. Since typical lending pools — including on platforms like Aave and Compound — are often heavily skewed with more lenders than borrowers, both parties end up paying excessive fees. Borrowers have to confront high costs due to the need to service the many lenders in the pool. In turn, lenders fight for the meager scraps left over from insufficient numbers of borrowers.

By using a P2P matching mechanism, Morpho Optimizers effectively takes the lender and borrower away from pool-based interaction and establishes a direct relationship between them. This allows users to borrow assets at cheaper rates, while also delivering better APYs for lenders. If either party withdraws from the direct lending relationship, both parties have the option to use the standard lending pools on Aave and Compound as a fallback.

The platform's third core product, Morpho Vaults (covered in more detail below) utilizes the underlying protocol and provides a way to lend through carefully curated market options at different risk profiles. This can suit lenders who are less proficient in using fully customized markets, but still prefer to take advantage of the lending opportunities offered by Morpho.

In order to create a custom lending market on Morpho, you need to have some technical proficiency and, preferably, knowledge of Solidity, the programming language that the protocol uses for its smart contracts. As noted earlier, developers can create a custom market by supplying five base parameters — a collateral asset, an asset offered for lending, an oracle, a preferred IRM and an LLTV. The first four of these normally require an Ethereum smart contract address to be specified. For the collateral and lending assets, these are the addresses for the tokens' contracts. The selected oracle is also usually established via a pointer to its smart contract address, although oracle-less hard-coded prices for the collateral and lent assets are acceptable. Morpho also maintains Ethereum addresses for each IRM whitelisted by the protocol's governance; developers can use these when choosing a preferred IRM.

The last value, LLTV, is a hard-coded figure that defines the threshold beyond which a loan becomes unhealthy due to its poor 

. Liquidators on Morpho are protocol actors who are incentivized to cover bad debts in return for collateral, similar to the method used on many other lending platforms. They’re allowed to liquidate up to 100% of the debt. In return, liquidators receive the debt's collateral, as well as an additional incentive for their work.

Since Morpho is an oracle-agnostic protocol without a built-in oracle, each market can have its own oracle that sources prices for the collateral and lending assets from external sources. Developers are completely free in that regard, and can even hard-code asset prices for the market if they don't wish to use a price oracle at all. Naturally, an oracle is preferred for maintaining the most up-to-date and dynamic pricing information.

The IRM used is the only base parameter with which developers are somewhat restricted in their choice, as only whitelisted IRMs are allowed for a market. As of mid-November 2024, there’s just one whitelisted IRM that market creators can specify — the 

. This model dynamically adjusts interest rates to maintain the proportion of borrowed funds to supplied funds at close to 90%.

Morpho Vaults are a tokenized vault product that offers curated lending opportunities with varying pre-programmed risk parameters. Each vault is associated with a single loan asset, and can allocate deposits across multiple Morpho markets, thereby leveraging the overall liquidity available on the Morpho protocol. Morpho Vaults suit lenders who prefer predictable risk management over the uncertainty of completely custom markets. Each lender can earn APY rates commensurate with their chosen 

There is no limit on the number of vaults you can open on Morpho. Thus, you might even allocate funds to different vaults with significantly different risk levels to diversify your exposure.

Morpho Vaults' curated nature eliminates the need for users to spend time researching and evaluating individual markets' risk levels and return opportunities, as risk exposure is actively managed by the vault.

Since the vaults are connected to the underlying protocol, and source liquidity from it, they’re dynamically rebalanced, which helps optimize yields. Thanks to their permissionless and immutable nature, the vaults are also completely transparent. Moreover, they’re noncustodial, granting users full control over their deposited assets, which can be withdrawn at any time.

A lender deposits an asset into a Morpho Vault and receives shares of the vault as confirmation of their investment. The vaults themselves are tokenized products utilizing Ethereum's 

 standard, designed to represent tokenized vaults for yield-bearing assets. Each vault may be owned by a 

 (DAO), an individual DeFi expert or some algorithm maintained by a DeFi platform. A vault can be owned by only one entity. The owner may specify additional roles/entities for managing the vault. These roles can include one curator, one guardian and multiple allocators.

The curator is a party who sets certain limits, rules and boundaries for the vault, such as specifying asset supply limitations and enabling/disabling specific markets. Curators are instrumental in maintaining appropriate risk levels for their vaults. Assets that lenders lock in a vault are supplied to the protocol's underlying markets, based on curators' whitelists. There can only be one curator for each vault.

The role of guardian is a key vault position. A guardian protects the integrity and security of the vault. Guardians can revoke any action by the vault owner (or other entities) if they consider it to be against the interests of vault lenders. Each vault can only have one guardian, typically a DAO consisting of vault depositors.

Allocators are protocol actors whose job is to rebalance the liquidity utilized by Morpho Vaults to optimize interest rates and accessible liquidity. An allocator’s job is to rebalance and optimize the total liquidity, either manually or using bots, to best meet the needs of Morpho borrowers.

Morpho Vaults' operations aren't regulated by the protocol's governance mechanism. Each vault owner is responsible for their vault's governance model. Specific roles, such as the curator and the guardian, are designed to help in establishing transparent and secure governance procedures for a vault.

What Is the Morpho Crypto Token (MORPHO)?

The platform's native cryptocurrency, MORPHO, is envisioned as a 

. Holders of MORPHO have the right to participate in decision-making on the platform's future direction, general rules, deployment of smart contracts and allocation of funds from the treasury. Although Morpho promotes lending and borrowing markets that operate with minimal interference from the protocol's governance community, there are some general guidelines and rules through which the community needs to establish certain standards, minimum requirements or whitelists. MORPHO token holders are instrumental in this process.

The original MORHPO token was launched on Ethereum in June 2022 with a supply cap of 1 billion. However, there were limitations to the original token contract that negatively affected its functionality. Specifically, the token wasn't designed to facilitate efficient on-chain voting. As a result of these limitations, the project decided to relaunch the token, now on an upgraded contract. The new reincarnation of MORPHO will offer better functional capabilities, including more efficient on-chain governance processes. 

As of the time of writing on Nov 17, 2024, the project team has yet to deploy the new token. The new MORPHO will also be a supply-capped crypto, with a maximum and total supply of 1 billion. The token's supply distribution shares are shown in the chart below.

 token before its market launch. Bybit Pre-Market Trading is an over-the-counter (OTC) trading platform that provides access to promising new cryptocurrencies before their listings on the Spot market. The key advantage of the platform is the ability to access cryptocurrencies at desirable rates before the broader crypto market affects their prices.

Bybit's carefully designed curation process ensures that only crypto assets with solid potential and fundamentals are whitelisted for Pre-Market Trading. This saves you the time required to investigate each cryptocurrency, and reduces the risk of investing in scam projects. Naturally, you’re also encouraged to 

 on crypto assets you might consider purchasing through Bybit Pre-Market Trading.

Morpho represents a unique and potentially highly effective approach to DeFi lending and borrowing. The platform's facilitation of isolated and highly customizable lending markets gives DeFi users unmatched freedom in terms of choice and variety. In addition, users who prefer the stability of curated and well-defined risk profiles can take advantage of Morpho Vaults for more predictable yields. The use of the overall underlying protocol liquidity along with entities such as allocators makes Morpho Vaults particularly effective at optimizing lending and borrowing costs.

While custom lending markets launched via the protocol are now Morpho's key focus, the legacy Morpho Optimizers also continue to offer value. P2P matching of lenders and borrowers as an add-on to the standard pool-based mechanism is a functionality many DeFi users will find helpful. Morpho Optimizers can offer lenders and borrowers active on Aave and Compound an alternative and highly effective way of conducting their operations.

With this arsenal of innovative and unique products, the Morpho protocol is quickly shaping up as a leading platform in the lending niche of the DeFi industry.

Advanced

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Morpho (MORPHO): Leading Efficient, Permissionless Crypto Lending

Puff is a meme coin with a dragon-based theme. It uses a gamified mechanic for distribution and is based on the Ethereum blockchain. Learn more here.

 are designed solely for entertainment, so they can have a lot of unusual and creative features. One example of the interesting applications of meme coins is Puff. This fun coin aims to attract users by adding elements of story and gamification to its design. If you're interested in learning about Puff and seeing why it's so popular lately, check out this guide.

 is a meme coin with a dragon-based theme. It uses a gamified mechanic for distribution and is based on the 

 blockchain. It encourages users to engage in its ecosystem by following along with Puff the Dragon's storyline.

mETHLab is an Ethereum-based lending and borrowing protocol. It's fixed-term and fixed-rate, with no forced 

 of collateral. Users can supply PUFF or mETH tokens and borrow mETH or USDe against these tokens.

 for the mETH Protocol. Users who hold mETH or participate in certain parts of the Puff the Dragon ecosystem can acquire points that will be converted to COOK. People can also acquire COOK by burning PUFF.

Puff aims to attract users with a novel approach to meme coins and lending. Its ecosystem takes the trending 

 ideas of gamification and storytelling and applies them to its products. For example, instead of simply borrowing on the mETHLab protocol, users are encouraged to "cook with Puff the Dragon in the mETHLab." The creators hope this adds a little extra fun and enjoyment that makes people more interested in working with their system.

As the dragon's origin story explains, Puff is also attempting to combine two opposing viewpoints into its ecosystem. Puff the Dragon is a "black and gold dragon" that is part chaos and part lawful order. Similarly, Puff's ecosystem tries to combine the regulation of 

. Unlike other ecosystems that either “play it safe” or focus on experimentation, Puff hopes to combine the two concepts into one system.

 network. All of its features are run through Ethereum’s system, so the project is reliable and secure. However, its secondary layer operates parallel to the main network, so it’s more scalable and features lower fees than Ethereum’s. The full ecosystem is accessible through the project's online website. This helpful interface guides people through staking, borrowing and lending Puff's digital assets in a fun, gamified manner. Unlike with traditional exchanges, the videos, cartoon assets and entertaining visuals are used to create a gamelike, fantasy feel.

The Puff the Dragon project offers far more than just a single, tradeable meme coin. Once you get involved in its ecosystem, you can access all of these exciting features.

The Puff Penthouse is where fans of Puff the Dragon can interact with the whole ecosystem. Users can stake and burn PUFF tokens, or send tokens to the mETHLab through this interface. It features many adorable and intriguing pieces of 3D art that add to the Puff lore.

 within the Puff the Dragon ecosystem. Each NFT features an individualized rendition of the project's dragon. There are currently 8,888 NFTs, ranked according to rarity. The rarest level, Legendary Puff Dragons, has 388 different variations.

Mystic Potions are another set of NFTs within the ecosystem. They come in red, green, blue and other colors, and can be used to mint Puff NFTs. There are 8,888 Mystic Potions, each one a 

. Only original ecosystem users are able to receive a Mystic Potion, but if desired, they can convert it to a Puff NFT and sell it.

PUFF is the main token of the Puff the Dragon ecosystem. In addition to trading like a standard meme coin, it can also be used for staking and lending. PUFF has a total supply of 888.888888 million tokens, 

 are indefinitely locked. Tokens will be distributed as follows:

The PUFF token has undergone plenty of price fluctuation since it was released. Shortly after its launch in April 2024, the coin shot up to an 

. However, as user interest waned, its price dropped to an ATL of $0.03 in September 2024. Nevertheless, there’s still a lot of interest in trading the token. Its price is back up to $0.0947 as of Nov 18, 2024, and many traders are bullish.

Analysis of market conditions from DigitalCoinPrice suggests a slightly different story: a small price decrease of around 2% to 5% in the upcoming weeks before rising in value as 2025 approaches. According to DigitalCoinPrice, by 2025 Puff 

, and by 2030 the token may be worth up to $0.54.

Looking to trade Puff tokens? Bybit now offers the PUFF/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

PUFF is an exciting project that's gotten a lot of interest recently. Thanks to its charming story and blend of helpful features, PUFF has done a great job of maintaining user engagement. The coin's trading volume is also fairly stable. This is a token worth investing in if you enjoy seeking out underrated yet promising meme coins.

 toward Puff the Dragon's design. Some feel that the coin's tokenomics and general structure keep it from being a true meme coin. Instead, they suggest that the coin is operating more like a web3 yield-farming system, but is using the meme coin label to get away with lax regulation and an imprecise road map. This doesn't necessarily mean the coin is doomed to failure, but it does mean you might want to look at it more critically than you might regard other meme coins. Since volatility is inevitable, it's essential to use 

 strategies such as portfolio divestment before buying PUFF.

Puff (PUFF) is an intriguing model of a meme coin that uses features besides memes to attract users. By creating a gamified staking and lending mechanism, Puff hopes to capture users' attention and get them invested in its dragon-themed storyline. Though this project still needs to prove that it can attract more fans, it's on the way to generating significant levels of interest. 

Intermediate

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Puff (PUFF): Entering the Magical Realm of Puff the Dragon

As Bitcoin's dominance persists, emerging regulatory clarity may catalyze a resurgence in altcoins, particularly for platforms like Ethereum and Solana, which are poised to benefit from a pro-crypto environment.

: Donald Trump’s election signals a pivotal shift in cryptocurrency policy, moving from skepticism to advocacy, which may redefine the regulatory landscape.

: The election result triggered immediate and substantial reactions in the crypto markets, particularly evident in Bitcoin's price surge, reflecting heightened investor optimism.

: A Republican-controlled U.S. Congress could lead to clearer and more favorable regulations for digital assets, fostering innovation and investment in the sector.

: As Bitcoin's dominance persists, emerging regulatory clarity may catalyze a resurgence in altcoins, particularly for platforms like Ethereum and Solana, which are poised to benefit from a pro-crypto environment.

Donald Trump’s re-emergence as the “crypto president” represents a dramatic turnaround in his relationship with the cryptocurrency sector. Once a vocal critic, his 2024 campaign embraced Bitcoin, positioning it as central to his economic strategy. This transformation can be attributed to the substantial financial contributions from crypto firms, which played a crucial role in his campaign, underscoring the industry's growing political influence. By vowing to make America the “crypto capital of the planet,” Trump not only appeals to a burgeoning voter base invested in digital assets, but also aligns himself with the interests of powerful crypto stakeholders. This shift could fundamentally alter the regulatory framework governing cryptocurrencies, potentially easing restrictions and fostering an environment more conducive to innovation.

The immediate aftermath of Trump’s victory was characterized by significant volatility in the crypto markets, particularly with Bitcoin (BTC) experiencing a sharp rally from approximately $70K to nearly $90K. This movement was not merely speculative; it reflected a broader alignment of market sentiment with political outcomes. The use of on-chain prediction markets such as Polymarket illustrated how traders adjusted their positions in real time based on election developments. As Trump's victory appeared more likely, BTC’s correlation with these prediction markets intensified, showcasing a direct link between political events and crypto valuations. This responsiveness highlights the increasing intertwining of traditional financial markets with crypto as investors seek to leverage political insights to inform their trading strategies.

Regulatory Outlook and Congressional Influence

With a Republican majority in both chambers of the U.S. Congress, the potential for significant regulatory reforms in the cryptocurrency space is heightened. Historical context reveals that previous efforts, such as the FIT21 Act, aimed to delineate the regulatory authority over digital assets, although it faced challenges in legislative passage. However, the current political landscape, coupled with substantial financial backing from crypto-friendly Super PACs, sets the stage for a more favorable regulatory environment. The election cycle demonstrated the effectiveness of targeted political spending in reshaping legislative priorities, particularly in key Senate races. 

As newly elected officials take office, their pro-crypto stances could lead to expedited discussions and potential passage of critical regulatory frameworks, thereby reducing ambiguity and fostering a more robust investment climate.

While Bitcoin continues to dominate the market narrative, the potential for altcoins to gain traction is significant, especially in light of a supportive regulatory environment. Historical patterns suggest that Bitcoin's dominance often peaks during bull markets, followed by a capital rotation into altcoins as investors seek higher returns. The recent surge in Bitcoin's price has overshadowed altcoins, and yet the incoming administration's pro-crypto posture may catalyze renewed interest in platforms like Ethereum and Solana. These networks, which facilitate smart contracts and decentralized finance (DeFi) applications, stand to benefit from increased investment as regulatory clarity emerges. The influx of capital into altcoin markets could be accelerated by the anticipated legislative focus on fostering innovation within the cryptocurrency sector, marking a potential shift in market dynamics as investors diversify their portfolios beyond Bitcoin.

In conclusion, Trump's presidency heralds a transformative period for the cryptocurrency landscape, characterized by potential regulatory clarity and increased market participation. As the political and financial realms converge, stakeholders in the crypto ecosystem must remain attuned to the evolving landscape, ready to adapt to new opportunities and challenges that arise in this dynamic environment.

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Bybit x Block Scholes Institution Report: Takeaways From the U.S. Election and What to Look For Next

Nansen has partnered with TRON DAO to integrate the TRON network into Nansen V2, enhancing on-chain analytics for the TRON ecosystem. 

Daily Top Performer — Virtuals Protocol (VIRTUAL)

The S&P 500 climbed 0.4%, driven by a nearly 5% surge in Nvidia shares ahead of its highly anticipated earnings report, which lifted market sentiment despite ongoing geopolitical concerns.  Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.15%, with Bitcoin rising by 1.13% and Ether dropping by 1.62%, in the past 24 hours.

Today's top performer is VIRTUAL, which surged 5.2% after the launch of Agentstarter, empowering founders to build successful AI agents with Virtuals Protocol.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. Virtuals Protocol introduces 

, an AI agent launchpad offering funding, development support, and distribution for creators. It aims to help founders build successful AI agents within a thriving ecosystem and long-term incentive structure.

Check Out the Latest Prices, Charts, and Data of 

 to integrate the TRON network into Nansen V2, enhancing on-chain analytics for the TRON ecosystem. This collaboration aims to provide developers, users, and projects with valuable data to foster growth and innovation. The integration will offer advanced features like Token God Mode, Wallet Profiler, and Smart Alerts, helping optimize decentralized applications (DApps) and improve transparency within the community. TRON’s high-speed, low-cost blockchain infrastructure will benefit from these enhanced analytics to further empower the ecosystem.

Yesterday, total inflows into BTC Spot ETFs amounted to $600.3 million, with $16.2 million coming from GBTC and $584.1 million from non-GBTC sources.

 allows users to earn XP for transactions, quests, gas fees, and referrals in its wallet. XP, while offchain, is tied to wallet addresses and used to level up and unlock exclusive rewards. Key features include free transactions on the ZERϴ Network, daily quests, and retroactive XP for active wallets before mid-October. Rewards enhance the onchain experience but are non-transferable. The program encourages bridging assets to ZERϴ and active participation to maximize XP and rewards.

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Nansen Partners with TRON DAO to Enhance On-Chain Analytics for TRON Ecosystem

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Explainers

Axela is a web3 solution serving as a universal network that builds bridges between multiple blockchain ecosystems. 

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The future of web3 is strongly dependent upon the ability of transactions to be completed across multiple blockchain ecosystems. More than that, this interoperability must be secure, fast and easy. However, thus far, both developers and users have struggled with 

 complexity. While blockchains are secure networks, the segregation associated with the fractured service market comes with costly deployment challenges and increased security risks. Axelar’s web3 overlay network provides an essential solution to these issues, enabling seamless interactions across various blockchains with a single click, a feature that significantly enhances the user experience in the web3 space. 

Axelar is a programmable interoperability network that revolutionizes web3 ease of use for both developers and end users. It enables effortless interaction with any asset or application across different chains. Axela is a web3 solution serving as a universal network that builds 

 The simplified architecture of Axelar, with its routing and delivery protocols, supports secure cross-chain communication with one-click functionality.

Further, the platform’s developers have designed the Axelar network to elevate security. 

Specifically, its decentralized architecture uses a 

 In addition, traffic can be suspended if interconnected chains are deemed to be malicious or compromised, in order to quickly isolate the problem.

In the vast expanse of the internet, the concept of 

 often escapes the notice of everyday users. Yet, it stands as a cornerstone of digital commerce and communication that’s integral to enabling global interactions, such as international video calls.

As we delve into the realm of web3, we’re in a phase akin to the internet's infancy in the 1980s, characterized by the rise of innovative applications across a variety of networks, each one isolated and unable to tap into its full global market potential due to a lack of interconnectedness. 

In order to appreciate the transformative impact of Axelar, it's essential to explore the evolving narrative of cross-chain functionality and its pivotal importance for the web3 landscape.

The Axelar network is uniquely positioned to dominate the interoperability market, a feat that entails integration with an extensive array of decentralized applications (

). Currently, Axelar leads this space, boasting three times more blue-chip DeFi integrations than its closest competitors. Axelar's collaboration with leading projects spans key web3 categories.

Axelar's ascendancy in the market is largely attributed to its superior technology, particularly in terms of security and scalability. This has been widely recognized within the developer community and corroborated by independent assessments, including a notable report by the Uniswap Foundation.

Axelar functions as a tech stack with three layers. Its first is a proof of stake blockchain that uses permissionless and PoS protocols to process cross-chain requests. A cross-chain gateway protocol sits over the blockchain, through which validators monitor and process cross-chain communication using 

. The cross-chain gateway protocol includes consensus, multi-party computation and voting for on-chain event verification. 

The second layer are the gateways consisting of smart contracts that the validators read and write to execute cross-chain transactions. The final layer, over the blockchain and gateway layer, is the API and SDK layer, which lets developers easily establish DApps across chains.

When an integrated blockchain is established, it has limitless interoperability functionality. More specifically, the 

 supports applications with popular blockchains like 

Axelar is a decentralized network with several standout features that enhance the functionality of cross-chain routing, while also supporting improved user experiences. What are some of these critical elements of the Axelar network?

 is a cross-chain liquidity router built on Axelar using Axelar General Message Passing (GMP). It enables conventional bridging, as well as native-to-native swaps in one click – as well as fast finality via Squid Boost, a feature that completes cross-chain swaps in seconds. Users interact directly via a simple user interface and top wallets and DEXs including MetaMask and dYdX integrate Squid via an SDK for seamless, decentralized cross-chain swaps. Try it out at 

General Message Passing (GMP) goes beyond bridging, giving dApps the ability to securely transmit any payload, including function calls, across blockchains. This is the core of Axelar’s programmable 

. GMP enables developers to compose across multiple chains, delivering access to assets and functionality as seamless, one-click experiences for their users. Prominent NFT and GameFi projects like Decentraland are using GMP capabilities to deliver these experiences to their users. 

 further supports interoperability by making it programmable. Developers can thus set up their DApps directly on Axelar via smart contracts, instead of having to build and manage them in multiple chains. The Axelar Virtual Machine supports two new products — the Interchain Amplifier and the Interchain Maestro. While the Interchain Amplifier supports easy and seamless connections via Axelar and its supported blockchains, the Interchain Maestro allows developers to launch and manage their DApps across all interconnected chains. 

At this time, Interchain Token Service – the first product atop Interchain Maestro – is approaching mainnet launch. Interchain Token Service allows developers to easily issue and manage tokens across multiple chains with full fungibility and custom functionality. 

This section compares the Axelar network to three prominent competitors: Chainlink Cross-Chain Interoperability Protocol (CCIP), LayerZero and Wormhole.

Currently, Axelar connects 54 chains, surpassing its competitors in network reach. Its early investment in scalable architecture has enabled easy integration of new blockchains, handling over $7 billion in transactions. Competitors such as Chainlink CCIP, LayerZero and Wormhole are trailing in adding new chains, due to less scalable infrastructures.

As web3's complexity escalates, Axelar's ability for permissionless blockchain connections will become increasingly vital, allowing immediate web3 integration for new blockchain projects.

 feature will enable developers to use smart contract templates for easy blockchain integration, supported by AXL-funded validator incentives. This feature is designed to adapt to emerging technologies, such as 

, ensuring future-proof interoperability.

Axelar stands out as the only decentralized interoperability platform, a fact supported by multiple independent reports, including one from the Uniswap Foundation. This decentralization is key to avoiding the significant losses seen in centralized cross-chain hacks.

Competitors such as Chainlink CCIP, LayerZero and Wormhole rely on a proof of authority (

) model with limited validators that’s been criticized for centralization risks. Axelar, in contrast, uses delegated proof of stake (

) consensus and a dynamic validator set that’s the largest (75) in cross-chain. In addition, Axelar’s hub-and-spoke network topology model enhances safety and containment in emergencies, unlike the pairwise networks of its competitors.

Layered Security: Cross-Chain Risk Management

Axelar's security strategy includes multiple layers, as follows.

Axelar is unique in offering a programmable cross-chain platform, complete with developer tools like Axelarscan. This contrasts with the closed, non-programmable stacks of CCIP, LayerZero, and Wormhole.

Cross-Chain Programmability and Token Liquidity

Axelar's ITS (Interchain Token Service), nearing mainnet launch, allows for easy management of native tokens across chains, a feature not fully supported by solutions like LayerZero’s Omnichain Fungible Tokens.

As Ethereum evolves, Axelar's role becomes crucial in maintaining interoperability among an increasing number of blockchains. Unlike basic bridges and sequencers, Axelar can support complex cross-chain processes with smart-contract logic, ensuring a seamless user experience and reducing developer workload.

Recognized as a leader in cross-chain solutions for web3, Axelar Network is entering 2024 with an expansive 

 following its impressive advancements in 2023. The network, highly regarded for its security, scalability and programmability, is already the preferred choice of major DeFi applications, DEXs, wallets and enterprise clients. This growth trajectory positions Axelar as the definitive cross-chain platform in the web3 ecosystem.

Looking ahead to 2024, Axelar is set to bring transformative changes. Key initiatives include the launch of the Axelar Virtual Machine, which will foster chain-agnostic development through open-source tools on a decentralized cross-chain infrastructure. Additionally, the network plans to enable permissionless connections for various chains through its Interchain Amplifier, potentially connecting hundreds of blockchains within the Ethereum Layer 2 ecosystem. 

Other noteworthy developments include the introduction of Interchain Tokens that enhance fungibility and functionality across all connected chains, and a gas-burning mechanism aimed at making the network 

. Moreover, Axelar is set to integrate diverse consensus approaches from blockchains such as Solana and Stellar, and improve its cross-chain gas fee estimation services. 

These advancements underscore Axelar's commitment to maintaining its leadership in the cross-chain domain while fostering a more interconnected and efficient blockchain ecosystem.

The native token of Axelar is AXL, which supports the network's decentralized interoperability. This 

 token is used for governance, staking, paying transaction fees and liquidity providing. As a PoS network, validators also earn rewards from securing the network. Some parameters covered under governance include the base inflation rate, chain rewards, transfer rate limits and the addition of new EVM chains.

Rewards increase the total AXL token supply. This inflationary structure is designed to enhance security, stability and decentralization to maintain and grow the network over the long run. 

 compatible variation of AXL is wAXL. This token is functional on all 

-compatible chains. Note that wAXL cannot be used for providing liquidity in exchange for rewards, and has to be converted back to native AXL in order to provide liquidity.

One billion AXL tokens were issued at the genesis block. These were initially allocated with 17% to the Axelar team, 12.5% to company operations, 29.54% to backers, 5% to a community sale and 35.96% to community programs. The majority of these tokens were initially locked. AXL tokens can be staked, but not transferred or spent during the locked period. The release schedule varies for each allocation group, ranging from six months to four years. 

The Axelar network employs inflationary rewards to encourage validators to support connections with external chains. This strategy has effectively managed over $7 billion in cross-chain volume and numerous requests.

With ambitions to expand and integrate hundreds or thousands of new blockchains, the Axelar Foundation is proposing 

The proposed changes aim to enhance AXL's utility and value as the network grows. These modifications could potentially lead to a deflationary trend for AXL in response to increased network activity.

Axelar stands as a comprehensive interoperability platform, connecting various blockchains and enabling the execution of smart-contract logic across chains. The core of this functionality is the AXL token, which not only fuels the network's operations but also ensures its security. Validators on the Axelar network stake AXL tokens to participate in the PoS consensus mechanism, playing a crucial role in verifying cross-chain transactions and earning rewards for their contributions.

, Bybit offers a marketplace for Axelar’s native token, AXL. 

AXL drives the interoperability of the decentralized Axelar network and supports cross-chain requests. AXL can be purchased on major crypto exchanges, including Bybit. Before making your token purchase, you’ll need to 

 and has an easy-to-use interface that simplifies orders. 

 in collaboration with Axelar where you can win prizes by completing simple tasks from Dec 15, 2023, 12PM (UTC) through Dec 31, 2023, 12PM (UTC). In order to qualify to win, you’ll need to:

Web3 has increasingly moved into the spotlight, and continued growth in this area is rooted in the ability to improve security and functionality for cross-chain communication. Axelar is a decentralized solution that supports the interoperability of multiple ecosystems while also enhancing security and functionality. Its network is becoming a critical aspect of web3 functionality, and its dominance will grow as more developments are introduced.

Axelar (AXL): Building Interoperability for the Crypto World

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