Two New ERC Standards Aim to Standardize Tokenized Vaults and Add Refund Option to NFTs
Categories: US
Developers can create new ERC standards that define a required set of functions for a token type - and they did just that. Two recently created ones have each attracted some attention and may find adoption in the future.Crypto users are probably familiar with numerous ERC standards, the most common of which is ERC-20, a standard for creating fungible tokens that are compatible with the broader Ethereum (ETH) network. Crypto vaults are contracts into which users deposit tokens and earn yield in return. Many of such vaults are tokenized. For instance, Aave mints aTokens, Compound (COMP) mints cTokens, and Sushi mints xTokens for the funds deposited in the protocols.Currently, the issue is that each of these protocols implements its own tokenized vaults since there is no standard interface. The newly proposed Ethereum standard ERC-4626 aims to address this issue. "Tokenized Vaults have a lack of standardization leading to diverse implementation details," the team behind EIP-4626 said. "Some various examples include lending markets, aggregators, and intrinsically interest bearing tokens.""Contributors are already working hard implementing the standard for Yearn’s V3 vaults," the protocol said on Twitter, adding that "ERC-4626 will be the gold standard for any sort of interest-bearing token… from Yearn Vaults to AAVE deposits and Balancer linear pools." "For collectors, the benefits of ERC721R are pretty straight forward: minimized rug pull risk during the refund period," the team said.However, some users have questioned the validity of this proposal given that blockchain transactions are irreversible. "This doesn't exactly prevent a rug because funds moved === funds unavailable," one user said.