Developers can create new ERC standards that define the required set of features for a token type – and they have done just that. Two recently created ones have attracted some attention and may find use in the future.
Cryptocurrency users are likely familiar with numerous ERC standards, the most common of which is ERC-20, a standard for creating fungible tokens compatible with the wider Ethereum (ETH) network.
Other popular standards include ERC-721, a standard for creating non-fungible tokens (NFTs), and ERC-1155, a standard that supports the creation of both fungible and non-fungible tokens.
Recently, developers have created two more standards that have attracted the attention of the community: ERC-4626 and ERC-721R.
ERC-4626: designed to standardize tokenized storage.
Crypto vaults are contracts where users deposit tokens and receive income in return. Many of these stores are tokenized. For example, Aave is issuing aToken tokens, Compound (COMP) is issuing cToken tokens, and Sushi is issuing xToken tokens for funds deposited in protocols.
Currently, the problem is that each of these protocols implement their own tokenized stores, as there is no standard interface. The recently proposed Ethereum ERC-4626 standard aims to address this issue.
“Tokenized storage lacks standardization, resulting in a variety of implementation details,” said the EIP-4626 design team. “Some different examples include credit markets, aggregators, and interest-bearing tokens.”
They added that this makes integration difficult as protocols must conform to many standards, which
“forces each protocol to implement its own adapters, which are error-prone and waste development resources.”
While it usually takes quite some time for a new ERC standard to catch on among decentralized finance (DeFi) protocols, the popular DeFi yield aggregator Yearn Finance (YFI) has already shown support for ERC-4626.
“Contributors are already hard at work on implementing the Yearns V3 vault standard,” the minutes tweeted, adding that “ERC-4626 will be the gold standard for every kind of interest-bearing token, from Yearn vaults to AAVE deposits and linear pools Balancer . .”
ERC-721R: Designed to provide NFT return capability.
ERC-721R Token Standard Launched CryptoFighters Alliance a P2E (play to earn) blockchain game, aims to create an insecure refund design for an NFT smart contract allowing minters to refund NFTs within a given period.
“NFTs, like any other product, need a refund period,” the team said in a Twitter post. “Time for buyers to decide if the team they just donated their ETH to really deserves it. This is a test of the huge amount of additional collections they get when they launch their mint.”
This new token standard will force digital artists to deliver on their promises and make them accountable by allowing users to recover funds directly from the mint contract, the team says.
“For collectors, the benefits of the ERC721R are pretty clear: minimized the risk of carpet pulling during the return period,” the team said.
However, some users have questioned the validity of this suggestion given that blockchain transactions are irreversible. “It definitely doesn’t interfere with the mat because funds moved === funds not available,” one user said.
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