Axelar Launches Interchain Token Service to Boost Token Interoperability
In Brief
Axelar has introduced a new product suite called the Interchain Token Service (ITS).
The ITS will allow teams to create Interchain Tokens that preserve fungibility to maximize cross-chain liquidity.
SushiSwap is one of the first projects to deploy Interchain Tokens.
Axelar, the web3 infrastructure for secure cross-chain communication, has launched a new new product suite called the Interchain Token Service (ITS).
The aim of ITS is to boost the interoperability of ERC-20 tokens on any EVM-compatible blockchain that is integrated with the Axelar network.
Interchain Token Service is a product suite to mint & manage Interchain Tokens, delivering…
— Axelar Network (@axelarcore) July 18, 2023
💸 Fungibility: tokens are cross-chain fungible
🔧 Custom functionality: tokens keep features cross-chain
💰 Low overhead: Smart contracts & developer tools automate developer tasks
The ITS will allow teams to create Interchain tokens that retain their custom features across different blockchains while preserving fungibility. Axelar’s programmable interoperability layer, the Axelar Virtual Machine, will manage the generation the Interchain Tokens on a 1:1 ratio.
With the product suite, builders can easily expand their token into multiple ecosystems with minimal overhead as smart contracts and an SDK will automate complex developer tasks. It supports 1-click, permissionless deployments and transfers.
With the ability to transfer tokens across various blockchains using the ITS, developers can build custom asset bridges and integrate asset transfers into their interchain decentralized applications (dApps), among other use cases.
SushiSwap is one of the first projects to deploy Interchain Tokens. This will enable the DEX’s native token, SUSHI, to become interoperable across Arbitrum, Ethereum, Optimism, and Polygon.
Interchain tokens are securely backed by the underlying proof-of-stake security of the Axelar network. According to Axelar, the easiest way to create an Interchain Token is to deploy a new standardized ERC-20 token accessible on multiple blockchain networks. To initiate the process, developers must first access the Interchain Portal.
They must then connect their wallet to the portal and choose a source network where funds are held. Next, they can select the option to deploy a new ERC-20 token. During this step, it is essential to specify an initial supply for the token or opt for the advanced alternative, which allows later minting. Finally, developers can then select any additional chains for their newly created token.
Those who already have ERC-20 tokens on one or more blockchains can turn them into an Interchain Token by deploying Token Managers.
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
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Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
