The new token standard is a sign that the DeFi ecosystem is continuously innovating and looking to solve problems on blockchains.
Yield Bearing Tokens Could Be DeFi’s Future
There has been a brand new proposal for the token standard, known as ERC-4626, which is spreading optimism in the Decentralized Finance (DeFi) market.
Ethereum Request for Comment (ERC)- 4626 is a token standard that has been introduced by the co-founder of Fei protocol, Joey Santoro, via a Twitter post on January 4. Yield-bearing vaults on the Ethereum network. It is an interface for Santoro has mentioned that this new token standard will:
Save time for developers
Allows for rapid innovation
Provide safety and assurance for the token’s users
Enables flexible integrations
“ERC4626 standardizes this paradigm of depositing and withdrawing from a vault denominated in a single token. This makes it incredibly easy for aggregators and plugins, which now only need to implement a single interface rather than dozens of adapters,” explained Santoro in a tweet.
“DeFi is all about composability, wrap/unwrap, deposit/withdraw, or whatever you want to call it,” added Santoro in a statement to The Defiant‘s Owen Fernau on January 6. “Things are being plugged into each other in many different ways. ERC-4626 is a unified plug for connecting tokens to services through these vaults.”
Santoro has added that the TRIBE will use ERC-4626 extensively. TRIBE is the native token of the Fei Protocol. The proposal has received several positive responses on Twitter from users that have praised Santoro for his “high-level thinking” and how this would push the DeFi community forward.
What is Fei Protocol?
Fei is a decentralized, scalable, stablecoin protocol based on the Ethereum network. As per the protocol’s whitepaper, the protocol’s main aim is to maintain a liquid market for ETH/FEI to trade closely to the ETH/USD trading pair. It achieves this using a stability mechanism called direct incentives like dynamic mint rewards and burn penalties on the DEX trade volume in order to maintain the peg.
Find more about Fei Protocol here:
Website | Twitter | Telegram | Discord | Medium | Github | Documentation | Whitepaper |
Source : bsc.news
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