In this Cryptocito livestream, Sergey Gorbunov of Axelar joins to break down how him and his team are building a network to make bridging as simple and safe as possible, how the FTX implosion affected builders, and more.
Read our note below to learn more.
FTX Impact
Axelar mostly unaffected, was unexposed to FTX.
Treasury in fiat and USDC, has runway for over 5 years.
Centralized infrastructure exists because decentralized infrastructure couldn’t provide the same services.
Crypto users should know about self custody and DEXs.
Self custody keys or devices put the trust in the user.
Still a lot that needs to be built.
Cryptocito
Jesse Powell, Co-Founder of Kraken, even advocates to not use CEXs for holding coins.
Bridge hacks are a big concern.
Axelar Security
Crypto started with CeFi exploits.
Axelar is based on PoS, decentralized tech.
Axelar has been audited over 27 times, added bug bounties.
Axelar implements rate limits to prevent a large amount of transactions that transfer value.
Learn more about Axelar security.
Goal is to make attack surfaces as small and as bulletproof as possible.
Security comes from diverse software deployments.
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Axelar Bridging Process
Axelar has cosmos IBC and EVM compatibility.
Bridges like Satellite uses IBC, translate transfers into a message that can be compatible with other chains.
Other dApps like Squid, and Prime perform the bridging process for the user.
Currently 50 validators.
Every validator knows what the other chain looks like, majority of validators have to approve of a crosschain message.
Quadratic voting feature makes a smoother stake distribution, so more validators are needed to approve transaction.
Validators can opt in, choose which chains they want to run on. They are incentivized to run as many nodes as possible.
Many chains are interested in integrating Axelar, including Sui and Aptos chains.
IBC allows A to B bridging, Axelar wants to make an onchain transport layer similar to an airport, with many different hubs in other ecosystems.
Any ecosystem added to Axelar network is automatically compatible with other ecosystems.
AXL Token
Network has been live since beginning of year, processed $1.5b in volume, connected to 27 chains.
AXL is used to pay gas for bridging and secure the Axelar chain.
Transaction fees are collected in gas token of the source chain, users don’t ever have to acquire gas tokens for other chains.
People who bridged to osmosis will be eligible for airdrop.
AXL current inflation of 9.25%, half of supply is staked.
When a new EVM chain is added, new tokens are inflated to incentivize bridging. This inflation was reduced by a vote.
Exploring how to make the token deflationary while still incentivizing transactions.
Axelar Roadmap
Continue scaling network.
Working with builders to build chain agnostic dApps.
Many Avalance subnets integrating including Pocket Worlds and Heroes of NFT.
Axelar powering Interop summit in Miami to bring many industry builders and investors to discuss the future of interoperable blockchains.