The Avalanche network is uniquely suited to become a hub of crypto transactions. This is due to its ultra quick transaction finality and low transaction costs. However, what exactly does it mean for Avalanche to become a hub of crypto transactions?
Specifically, it means that Avalanche will support numerous different assets from many different blockchains. Already, Avalanche supports two main bridges: the prominent Avalanche Bridge (swapping from Ethereum to Avalanche) and the Anyswap bridge. However, in the future, there will assuredly be more.
How about a bridge from Binance Smart Chain to Avalanche? Or Fantom to Avalanche? Or how about Polygon to Avalanche? There are countless possibilities for future bridges to Avalanche that will bring new (and duplicate) coins over.
Not only this, many protocols may start offering native support for their coins on Avalanche in addition to the bridged versions of their tokens. This presents an issue of fragmented liquidity. In other words, some people will be holding one version of a token and other people will be holding another.
Axial solves this issue by providing a means for which bridged and native assets of the same kind can swap between each other seamlessly. In a future scenario, there may be USDT.e (from Ethereum), USDT.b (from BSC), and native USDT on the Avalanche network. Axial will create a 3-token liquidity pool between these assets so that holders of each token can swap between each other. In this way, friction on the network is reduced and liquidity is increased.
It’s important to note that Axial will provide this service for many different tokens, not just stablecoins. Imagine the opportunity for Bitcoin. Currently there is wBTC.e on the network that was bridged from Ethereum and renBTC. In the future, tBTC or iBTC may come over to Avalanche. Each of these versions of Bitcoin may be required for different protocols and it will be necessary to swap between them with little resistance. Axial will provide this ability for all tokens, essentially becoming a new hub for liquidity on Avalanche.
About Axial
Axial is a decentralized value-pegged asset exchange with a focus on native Avalanche applications. Axial uses a model that provides ultra low fees and slippage for traders.
