Understanding EIP-4626: A Common Standard for Tokenized Vaults

Original author: Stader Ethereum

Original compilation: Shenchao TechFlow

Tokenized vault, as an emerging digital The asset management method has been widely used in Ethereum. However, the lack of uniform standards among different protocols makes their integration difficult. Fortunately, the emergence of EIP-4626 will change this situation. This article will detail the role of EIP-4626 and the benefits it brings.

Tokenized vaults on Ethereum are actually nothing new.

Protocols like Yearn allow you to deposit tokens in a vault. During the period when these tokens are locked, you can earn income. Similar examples are Aave and Compound, which do similar operations through their lending protocols.

What do all these agreements have in common?

When you deposit tokens, you will receive a "Vault Token". These protocols accumulate more "vault tokens" as you keep your tokens locked. When you decide to get your tokens back, you simply exchange "Vault Tokens" for the original tokens and rewards.

So far so good, no? However, there is a problem: There is no uniform standard. This means that integration between protocols is nearly impossible, forcing protocols to implement their own adapters.

This is where EIP-4626 comes in - EIP-4626 will be the rules of the game for tokenized vaults.

It sets the standard for Ethereum, the goal is to achieve interoperability between different tokenized vaults, EIP-4626 is the token vault universal adapter.

EIP-4626 specifies the standard interface that every tokenized vault should follow.

First, every tokenized vault shall default to an ERC-20 token. Additionally, ERC-4626 adds a series of methods that can be called on this contract. Example:

“Total Assets” : This will show the total amount of base tokens managed by the vault.

"Convert To Shares": This can let you know, on the basis of exchange When tokens are issued, how many revenue tokens will be obtained.

As more and more protocols start to adopt this standard, we can expect to see:

Increased interoperability: because every protocol uses the same standards;

Reduced development time: No more writing new adapters;

More secure: Helps audits know where to look for vulnerabilities.

In summary - EIP-4626 is an important development for the Ethereum community. It provides a set of standards for tokenized vaults, making them more secure and interoperable.

Original link

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia