News Report Technology
April 12, 2024

Ethereum Foundation Adopts ERC-7621 Draft Along With Basket Token Standard

In Brief

Ethereum Foundation has formally recognized and merged Alvara Protocol’s ERC-7621 token standard into a standard draft status. 

Ethereum Foundation Adopts ERC-7621 Draft Along With Basket Token Standard

Decentralized finance (DeFi) platform Alvara Protocol announced that the Ethereum Foundation has formally recognized and merged its ERC-7621 token standard into a standard draft status.

The ERC-7621 token standard enables the generation of multi-asset tokenized baskets on the blockchain. Individuals can create Basket Tokens comprising a variety of underlying ERC-20 tokens, providing flexibility and versatility.

Transferable Basket Token Standard (BTS) and Management Rights allow ownership transfer using the ERC-721 standard. Meanwhile, fungible BTS liquidity providers (LPs) represent fractional ownership in a basket, applicable across different platforms such as governance, listings, derivatives, staking, among other functionalities.

BTS LP tokens are created upon contributions and removed when withdrawals are initiated. Through management fees, BTS creators receive 1% of the total value locked by default. Portfolio adjustment capabilities empower managers or decentralized autonomous organizations (DAOs) to easily modify assets and their weightings as required, including automatic or manual rebalancing options. This ensures flexibility and adaptability within the basket.

Addressing various challenges in fund management, ERC-7621 tackles issues like transparency by guaranteeing full visibility of on-chain baskets, reduces over-centralization by enabling anyone to take on the role of a manager, streamlines management by consolidating funds to unified tokenized basket, broadens availability by expanding options of investment to a broader user base, and resolves latency-related problems by facilitating rapid and efficient design and deployment processes.

In addition, the new token standard brings significant advancements in portfolio management, investment flexibility, transparency and liquidity. Addressing the limitations of centralized solutions promotes the development of an efficient and user-friendly ecosystem for creating and participating in tokenized investment baskets.

Alvara Protocol Launches Testnet Accessible For Users

It is a decentralized platform for users to initiate and oversee tokenized basket funds. It utilizes the ERC-BTS for managing and creating funds on the blockchain. Moreover, it provides Fund Factory and Marketplace, featuring a transparent leaderboard that displays the performance of each BTS created. Alvara ecosystem is powered by ALVA and veALVA tokens, with veALVA holders wielding significant influence over the substantial ALVA reward stream.

Recently, Alvara Protocol launched its testnet, offering users the opportunity to explore and test the functionalities of its platform within a simulated environment.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Read More
Read more
HyveDA Unveils X Committee In Partnership With Lido, Lists wstETH As First Collateral
News Report Technology
HyveDA Unveils X Committee In Partnership With Lido, Lists wstETH As First Collateral
November 21, 2024
Bitfinex: Bitcoin Jumps 39.5% In Nine Days, Indicating Surge In Investor Interest
News Report Technology
Bitfinex: Bitcoin Jumps 39.5% In Nine Days, Indicating Surge In Investor Interest
November 21, 2024
The Rise of the UAE as a Strategic Hub for Web3 Gaming Innovation and International Collaboration
Opinion Lifestyle Markets Technology
The Rise of the UAE as a Strategic Hub for Web3 Gaming Innovation and International Collaboration
November 21, 2024
Bybit Launches Gold & FX Treasure Hunt Competition, Offering Real Gold Rewards
News Report Technology
Bybit Launches Gold & FX Treasure Hunt Competition, Offering Real Gold Rewards
November 21, 2024