ERC-4626 standard

Developers > Network and codebase > ERC-4626

What is the ERC-4626 standard?

The ERC-4626 is a standard interface for yield-bearing tokens.
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 -

Why is the ERC-4626 compatibility needed?

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.

Backward Compatibility

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.

ERC-4626 compliant contracts

All deployed Best Yield strategies ERC-4626 wrappers can be found here.
All deployed Yield Tranches ERC-4626 wrappers can be found here.