HAQQ x Axelar: Enhanced Cross-Chain Interoperability for Ethical Finance
Tl;dr: Amid surging DeFi adoption, enabling seamless value transfer between blockchains is vital for an efficient, interconnected web3 ecosystem. As the leading Shariah-compliant ecosystem, HAQQ - a scalable and interoperable L1 with instant finality is committed to ethical finance and sustainable investing practices. We're excited to announce our upcoming integration with Axelar network, a cutting-edge platform that delivers secure interchain communication and powers the interchain future. This collaboration aims to enhance the adoption of Islamic Coin (ISLM), the native token of the HAQQ, bring USDC and drive liquidity into the HAQQ ecosystem, and potentially boost the adoption of our Sharia-compliant gold-backed tokens. Continue reading for the specifics and details about the benefits of this integration for our community.
Expanding Cross-Chain Asset Transfer with Axelar's Cross-Chain Network:
Once integrated, the Axelar network's cross-chain technology will complement HAQQ's native interoperability capabilities, further enhancing seamless cross-chain communication. HAQQ, being already compatible with EVM-based chains and capable of leveraging IBC for interaction with other Cosmos-based chains, provides a solid foundation for asset transfers, such as Islamic Coin (ISLM), between various blockchain networks. Axelar also provides cross-chain deposit addresses that allow DApps to create onboarding UX that rivals CEX. The integration with Axelar will effectively broaden the adoption of ISLM beyond the HAQQ, opening it up to other ecosystems and empowering users to leverage their ISLM holdings across a wider array of DeFi platforms while adhering to ethical finance and sustainable investing principles.
Additionally, this integration will significantly benefit other projects that utilize HAQQ for deploying their smart contracts and dApps. By integrating AXL token standards into their smart contracts, developers can easily deploy their tokens across multiple networks. Hence, their native tokens will not only enjoy compatibility with EVM chains and Cosmos-based networks but will also become interoperable with other chains supported by the Axelar bridge. This will effectively increase liquidity inflow for dApps deployed on the HAQQ. The combination of HAQQ's native interoperability and the Axelar network's intuitive, secure cross-chain technology creates a powerful synergy, making this collaboration highly promising for our users and the broader DeFi community.
Welcoming USDC into the HAQQ Ecosystem:
Stablecoins play a critical role in the DeFi landscape, acting as a reliable store of value and facilitating smooth transactions within decentralized applications. Their importance cannot be overstated, as they reduce volatility risks and provide stability essential for the sustainable growth of the DeFi ecosystem. Upon integration, HAQQ users will be able to access and transfer USDC within our ecosystem, thanks to the Axelar network's creation of axlUSDC, a wrapped version of USDC compatible with their cross-chain bridge. axlUSDC maintains a 1:1 peg with USDC, ensuring users can trust the value of their assets. Furthermore, users will be able to convert USDC to axlUSDC through Axelar's Token Converter, a decentralized and secure platform designed for seamless asset conversion. This process will enable seamless USDC transfers and cross-chain DeFi opportunities, enhancing the versatility of our platform and providing our users with a stablecoin option for their transactions, all while staying true to the ethical values that HAQQ upholds.
Facilitating financially resilient use cases, e.g. Sharia-compliant Lending:
With improved liquidity on dApps and other protocols in the network, user-facing dApps will be able to connect with other blockchains and assets outside its ecosystem, thereby deepening the liquidity of its Automated Market Maker (AMM pools) built atop its network to provide seamless swaps for trading and transactions. Notably, one of the resultant use cases this could further spawn is Sharia-compliant lending on the HAQQ. In this case, lenders can provide funds to borrowers without interest through profit-and-loss sharing agreements. In addition, AMM pools and tokens accessible to every HAQQ wallet user will go through the Shariah Oracle verification. This will allow for the creation of lending pools compliant with Shariah law by providing a mechanism for investors to contribute funds to the pool and earn a return based on the profits generated directly from the lending activity.
Fostering Shariah-Compliant Gold-Backed Tokens:
HAQQ is actively working on developing Sharia-compliant gold-backed tokens in line with our commitment to ethical finance. Given the challenges associated with USDC and the dollar, such as fluctuating exchange rates, inflationary concerns, and the centralized nature of traditional finance, these Sharia-compliant gold-backed tokens present a compelling alternative for investors seeking stability and adherence to ethical principles. Furthermore, the integration with the Axelar network will expand our users' accessibility to other chains, allowing our gold-backed tokens to span multiple networks potentially, thus increasing their total value locked (TVL) and adoption.
Improving the Cross-Chain Experience and Mobile Adoption:
As part of our continuous efforts to enhance the cross-chain experience for HAQQ users and other ecosystems already integrated with Axelar, we are researching and working on providing an improved mobile experience. We will natively incorporate Axelar’s 1-click feature into the HAQQ Wallet to allow users to seamlessly transfer funds and assets between blockchains without needing external exchanges or swap platforms.
For example, a HAQQ Wallet user who holds the Islamic Coin in their wallet could easily use the 1-click feature to exchange it for a different Sharia-compliant asset, which can be used on other blockchain-based platforms. This could be done without having to leave the HAQQ wallet or go through the time-consuming process of transferring the assets to an exchange.
Integrating Axelar's 1-click feature into the HAQQ wallet would also give users access to multiple decentralized exchanges and liquidity pools, allowing them to take advantage of better pricing and swap rates. This feature supports general message passing across chains. It would provide a more seamless and user-friendly experience for HAQQ users who wish to engage in cross-chain transactions. This will further push the adoption of ethical web3 investing by making it more accessible and user-friendly, enabling a broader audience to participate in decentralized finance while staying true to their ethical values.
Transforming Decentralized Finance through Ethical Cross-Chain Interoperability:
The upcoming integration of HAQQ with the Axelar network signifies a significant milestone in our pursuit of cross-chain interoperability while staying committed to ethical finance and sustainable investing. By utilizing their intuitive and secure cross-chain technology, we will expand the adoption of Islamic Coin (ISLM), introduce USDC into our ecosystem, and pave the way for the widespread use of our Sharia-compliant gold-backed tokens. Moreover, our focus on improving the cross-chain experience and mobile adoption will further solidify HAQQ as an attractive platform for users seeking cross-chain DeFi opportunities that align with their ethical values. We are working with Halborn to provide an overall audit of our work, including the partnerships we are expanding as the days go on. Stay tuned for further updates on our exciting journey to transform the world of decentralized finance, one ethical step at a time.