Squid is a new protocol that aims to facilitate the transfer of digital value across different blockchains through general message passing, which allows for seamless interoperability without locking up assets on a bridge. Although Squid has a unique approach to interoperability, it will face stiff competition from other DeFi products that also aim to improve interoperability between different blockchain networks.

Thorchain is a decentralized cross-chain liquidity network that allows users to swap assets across different blockchains. Thorchain's key advantage is its established liquidity pools, which enable users to trade assets without the need for an intermediary. This provides Thorchain with an edge over Squid, as liquidity is a critical factor in decentralized exchanges.

Stargate is a protocol for building inter-blockchain applications that connects disparate blockchain networks using a standardized messaging system. The standardized messaging system used by Stargate provides a more uniform approach to cross-chain communication, which could make it a more attractive option for developers looking to build interoperable applications. In comparison, Squid's messaging system is based on general message passing, which may be less standardized.

Multichain is a blockchain platform that provides interoperability between different blockchain networks, enabling users to transfer assets and data seamlessly. Multichain's focus on data transfer rather than asset transfer could make it a more attractive option for businesses and developers looking to build applications that require cross-chain data transfer. In contrast, Squid's primary focus is on asset transfer.

Celer is a layer-2 scaling solution that enables fast and low-cost transactions across different blockchains. While Celer's focus is on scaling solutions, it could still be seen as a competitor to Squid as it enables users to access a wider range of applications and assets across different blockchains. Celer's key advantage is its ability to process transactions at a much faster rate and at a lower cost than Squid.

Overall, Squid faces stiff competition from established DeFi products such as Thorchain, Stargate, Multichain, and Celer, which all offer unique advantages over Squid in terms of liquidity, standardization, data transfer, and transaction speed. However, Squid's unique approach to interoperability through general message passing and its ability to facilitate seamless asset transfers across different blockchains could still make it a viable option for users looking for a reliable and secure cross-chain solution.