Interchain Token Service Opens Native-Like Capabilities on 15+ Chains - Chainwire

06Feb

Interchain Token Service Opens Native-Like Capabilities on 15+ Chains

New York, USA, February 6th, 2024, Chainwire

Frax Finance is among the 1st to adopt no-code Interchain Tokens

Axelar network’s Interchain Token Service (ITS) is now live on mainnet and permissionlessly available, allowing any ERC-20 token issuer to create Interchain Tokens with the click of a button.

Interchain Tokens move freely to EVM-compatible blockchains selected by the issuer (up to 15 at present) maintaining the full fungibility and custom functionality of native assets. A suite of smart contracts and developer tools automate cross-chain deployment and supply management functions, for extremely low developer overhead.

Leading projects already adopting Interchain Token Service include Frax Finance, which is integrating ITS into its new layer-2, Fraxtal.

“Integrating Interchain Token Service from the start, the Fraxtal L2 will enable seamless, no-code interoperability for many builders joining at the ground floor,” said Nader Ghazvini, co-founder of Fraxtal and head of governance at Frax Finance. “Frax has always pushed the boundaries of what’s possible in DeFi, and integrating ITS makes Fraxtal the platform to continue groundbreaking innovation into the future.”

In brief, Interchain Token Service is:

No-code: Only Interchain Tokens fully automate permissionless multichain deploy-and-manage.
Trustless: Interchain Tokens run on open-source code via smart contracts on a public blockchain secured by a dynamic validator set.
Fungible: Issuers choose burn-and-mint or lock-and-mint mechanisms and get canonical versions with the same address.
Functional: Interchain Tokens are customizable with features like yield, governance & permissions; they go cross-chain with customizations intact.

Interop Labs is the initial developer of Axelar network and worked on developing the ITS smart contracts.

“Interchain Token Service leaves behind the bad user experience and developer experience people rightfully associate with bridges,” said Sergey Gorbunov, CEO of Interop Labs and co-founder of the Axelar protocol. “The ability to create Interchain Tokens will be critical scaling infrastructure for the next generation of chain-agnostic applications in Web3.”

Users are welcome to try out Axelar’s Interchain Token Service today by visiting: interchain.axelar.dev/ or learn more at axelar.network/interchaintokens.

About Axelar network

Axelar is the programmable Web3 interoperability platform, connecting over 50 blockchains via a secure, scalable network – internet infrastructure for the world’s next super app. Via integrations ranging from Uniswap to Microsoft, Axelar network enables scalable cross-chain solutions. Users interact with any asset in one click. Developers span multiple blockchains as though building on one, supported by a simple API and a permissionless ecosystem of tools and service providers. Backers include Binance, Coinbase, Dragonfly, Galaxy and Polychain. See what full-stack interoperability can do for your dApp. Learn more at axelar.network.

About Axelar Foundation

Axelar Foundation is a nonprofit established to support the growth and adoption of the Axelar network, a decentralized interoperability network that connects multiple blockchain ecosystems. Learn more at axelar.foundation.

About Interop Labs

Interop Labs is a leading developer of blockchain interoperability technology, used by Web3 infrastructure protocols to support scaling the next generation of internet applications to billions of users. Interop Labs is the initial developer of Axelar network. Learn more at interoplabs.io.

About Frax Finance

The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.

FRAX: is the stablecoin targeting a tight band around $1/coin.

Frax Shares (FXS): is the governance token which accrues fees, seigniorage revenue, and excess collateral value.

Frax Price Index (FPI): is the second stablecoin of the Frax Finance ecosystem. FPI is the first stablecoin pegged to a basket of real-world consumer items as defined by the US CPI-U average.

Frax Price Index Share (FPIS): is the governance token of FPI, which is also entitled to seigniorage from the protocol.

Frax Ether (frxETH): is a stablecoin loosely pegged to ETH, leveraging Frax’s winning playbook on stablecoins and onboarding ETH into the Frax ecosystem.

Staked Frax Ether (sfrxETH): is the version of frxETH which accrues staking yield, All profit generated from Frax Ether validators is distributed to sfrxETH holders. By exchanging frxETH for sfrxETH, one becomes eligible for staking yield, which is redeemed upon converting sfrxETH back to frxETH.