The new Ethereum token standard EIP-4626 may allow the creation of yielding tokens. With this standard, a single Ethereum ERC-20 token will act similarly to vaults, which are the backbone elements of the global decentralized finance (DeFi) ecosystem. So What Is EIP-4626?
Turning tokens into vaults: Meet EIP-4626
Ethereum (ETH) developer and expert, co-founder of the Stack3 DAO platform and known on Twitter as 0xSassun, last month shared the benefits of the most unusual offer for the leading altcoin Ethereum (ETH) on Twitter.
ERC-4626 will drastically change the game, with 99% of DeFi users sleeping above it. In short, ERC-4626 is the Tokenized Vault Standard.
ERC-4626 will be a huge game changer and 99% of #DeFi folks are sleeping on it. 🧐
In short ERC-4626 is a Tokenized Vault Standard.
Let's dive into it👇
— 0xSassun (@0xSassun) May 6, 2022
In short, this offer is ERC-4626, the new Ethereum-based token standard will introduce. These tokens will be able to replace the vaults, efficiency-bearing mechanisms for the DeFi segment. Modern yield tokens guarantee their users periodic rewards that correlate with the growth of their underlying liquidity pools.
However, creating DeFis on yield-bearing tokens is currently quite difficult. To ensure their integrity, engineers need to write multiple hack-resistant ‘adapters’. Software developers also state that such mechanisms will be developed in a ‘Lego-like’ way if EIP-4626 is approved.
Ethereum (ETH) veterans support eccentric offering
As explained by 0xSassun, the implementation of ERC-4626 will increase the interoperability of different DeFi protocols and reduce development complexity and effort . In addition, this update will bring security and auditability of smart contracts. Therefore, experienced Ethereum (ETH) developers support the upcoming innovation. So, Joey Santoro of Fei Protocol (FEI) has been endorsed by representatives of the Yearn.Finance (YFI) protocol and VC heavyweight Paradigm.
While these developments are taking place , as you can follow from the news of Cryptokoin.com , the leading altcoin continues to bleed in the market. At the time of writing, according to CoinMarketCap data, Ethereum has lost 4.48% in value in the last 24 hours, falling to $ 2,559. The altcoin, which comes after Bitcoin in the crypto league, is 47.74% off the all-time high of around $4,900 that it saw about 6 months ago. Let’s see if new developments can cure Ethereum’s problem.
