EYWA and Axelar: What’s The Difference?

EYWA and Axelar: What Axelar is, what problems it’s supposed to solve, as well as the similarities and differences between the two projects.

Analyzing Axelar and defining the key differences between Axelar and EYWA

Today we continue our series of comparison articles by looking at the similarities and differences between EYWA and Axelar. While being in the same niche, these projects are designed to solve interoperability issues across different blockchains, but these similar goals do not make them twin projects. For a better comparison, we need to take a closer look at Axelar.

Introduction to Axelar

Axelar is a decentralized network deployed on Cosmos. It allows the transfer of any data and liquidity from different blockchains. Thanks to the CGP and CTP protocols (we will discuss them in more detail later), blockchain developers and dApps builders can connect to the rest of the Axelar ecosystem, and deploy applications in any blockchain, while interacting with other networks. Users are not left out either, as they have the bonus of being able to interact with all the dApps of the Axelar ecosystem directly from their wallets.

The main Axelar protocols

After a short Axelar description, it’s time to move on to the protocols used by the project.

Cross-Chain Gateway Protocol (CGP)?is the underlying protocol of the entire Axelar system, which allows the connection of new networks, autonomous blockchain ecosystems and the transfer of information among them (networks do not have to use a single programming language when exchanging data). In addition, the use of CGP does not impose any conditions on the consensus mode in the connected blockchains.

CrossChain Transfer Protocol (CTP)?is the application layer protocol and is built on top of the CGP protocol. The CTP protocol allows developers to make cross-chain requests, block/unblock and transfer assets between networks in the Axelar ecosystem. Developers can choose any network in which they want to deploy their projects, platforms or dApps, with the ability to interact with other blockchains. To exchange data with applications from different blockchains, a user needs tomake API calls that work similarly to HTTP requests.

Main objectives addressed by EYWA and Axelar

The main goal of both EYWA and Axelar is to transfer data between networks and solve the interoperability problem across blockchains. One of the main differences between the two projects is the solution to the problems — EYWA has a more decentralized, and therefore more secure approach to achieving the goals. In addition, unlike Axelar, EYWA solves several other key problems, which we will take a look at once we figure out what makes the EYWA network more secure.

Decentralization and consensus mechanics

Decentralization and consensus mode are important when it comes to network security. As mentioned above, the Axelar project is based on Cosmos and uses Delegated Proof-of-Stake (DPoS) consensus, which is standard in the Cosmos ecosystem. The special feature of this consensus is transaction validating nodes that are publicly known, which immediately brings up the following problems:

• A limited number of nodes participating in transaction validation. In the Axelar project, as in the Cosmos ecosystem, validators will be selected based on the number of staked funds. Their task will be to process the network’s transactions. To scale such blockchains, the processes of creating shards and validating transactions would have to happen at the same time.
• Publicity of validators makes the system vulnerable to censorship and DDoS attacks, which can hinder network performance.

The?EYWA Oracle Network?employs a different consensus mode, which solves the problems listed above. By using Roll-DPoS consensus, EYWA has the ability to scale infinitely. This is achieved by using the VRF (Verifiable Random Function) lottery to select the validators that will participate in the next epoch. In addition, all EYWA nodes will be anonymous and independent, which will avoid targeted DDoS attacks and the censorship influence.

What else can the EYWA and Axelar projects do?

As we discussed above, the Axelar project has only one function and that is to move different data and liquidity between blockchains. As for the EYWA project, it addresses a number of other important issues, the most important of which is solving the liquidity fragmentation problem. Currently, no project (including Axelar) addresses this problem except EYWA. Next, we will take a closer look at how EYWA solves this issue.

How does EYWA solve problems?

Solving liquidity fragmentation with EYWA protocols.?The problem of liquidity fragmentation is solved by using the?EYWA Cross-chain DEX?and?EUSD?stablecoin, which is the LP token of the cross-chain stablecoin pools. This is achieved through the fact that EUSD is backed by the largest blockchain stablecoins. This approach makes it possible to convert EUSD to any of the stablecoins that serve as a collateral. Mint of the EYWA stablecoin happens every time liquidity is added to the cross-chain stablecoin pools. This way of creating EUSD ensures that EUSD is pegged to the $1 price. At the first stage, EUSD can be exchanged for stablecoins of the following networks: Ethereum, BNB, Polygon, Avalanche, Fantom, Arbitrum, Cronos. Considering all the properties of EUSD, it is easy to understand that a project trading its token against EYWA’s stablecoin gets access to several blockchains at once. In addition, the ability to keep all the liquidity in one place helps keep the value of its token more stable.

The ability to exchange assets of the same nature with minimal slippage.?This ability is made possible through the use of stable curve pools for aggregation and exchange. By adding another step in the exchange process in the form of an intermediate blockchain, it is possible to achieve a minimal level of slippage.

Additional earning opportunity.?The aggregation of the same type of assets in one pool creates an earning opportunity that Axelar doesn’t have. Using arbitrage, users will earn income and equalize the value of assets of the same nature from different networks.

To sum it up

The EYWA and Axelar projects have similar goals, but their approachis completely different. This happens everywhere: teams from different projects that want to achieve similar goals, create their own unique solutions and protocols. By comparing the projects in this article, we see that EYWA goes beyond solving blockchain interoperability by creating additional protocols and tools, thereby overcoming important and complex barriers to the overall adoption of cryptocurrency in the world.

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