ERC-4626 standard
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The ERC-4626 is a standard to optimize and unify the technical parameters of yield-bearing vaults. It provides a standard API for tokenized yield-bearing vaults that represent shares of a single underlying ERC-20 token. ERC-4626 also outlines an optional extension for tokenized vaults utilizing ERC-20, offering basic functionality for depositing, withdrawing tokens and reading balances - Ethereum.org
Tokenized vaults have a lack of standardization leading to diverse implementation details. Some examples include lending markets, aggregators, and intrinsically interest-bearing tokens. This makes integration difficult at the aggregator or plugin layer for protocols conforming to multiple standards, forcing each protocol to implement its error-prone adapters.
A standard for tokenized vaults will lower the integration effort for yield-bearing vaults while creating more consistent and robust implementation patterns enhancing the DeFi composability capacity. This standard will also reduce the cost of audits to secure their adapters from vulnerabilities.
All ERC-4626 tokenized vaults must implement ERC-20 to represent shares. If a vault is to be non-transferrable, it may revert on calls to
transfer or transferFrom. The ERC-20 operations balanceOf, transfer, totalSupply, etc. operate on the Vault “shares” which represent a claim to ownership on a fraction of the Vault’s underlying holdings.All ERC-4626 tokenized Vaults must implement ERC-20’s optional metadata extensions. The
name and symbol functions should reflect the underlying token’s name and symbol in some way.EIP-4626 is fully backward compatible with the ERC-20 standard and has no known compatibility issues with other standards. For production implementations of vaults that do not use ERC-4626, wrapper adapters can be developed and used.
Last modified 5mo ago