The co-founder of the Stack3 DAO platform, Ethereum (ETH) developer and specialist @0xSassun, has taken to Twitter to discuss the benefits of the most unusual proposal for Ethereum (ETH) in the previous month.
In summary, this proposal will introduce ERC-4626, a new Ethereum-based token standard. For the DeFi section, these tokens will be able to replace vaults, which are yield-bearing mechanisms.
Users of modern yield-bearing tokens are guaranteed periodic incentives that are linked to the growth of the underlying liquidity pools. Building DeFis on top of yield-bearing tokens, on the other hand, is currently quite difficult: engineers must create various attack-resistant “adapters” to secure their integrity.
If ERC-4626 is authorised, software engineers say such methods will be constructed in a “Lego-like” manner. According to @0xSassun, implementing ERC-4626 will increase the interoperability of various DeFi protocols while also reducing development complexity and effort.
This update will also improve smart contract security and auditability. That is why experienced Ethereum (ETH) engineers are backing the new technology.
The Yearn.Finance (YFI) protocol has been approved by VC heavyweights Paradigm.
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