ERC-4626 Vault Standard
What is a ERC-4626?
ERC-4626 is a tokenized vault 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, the reference asset. ERC-4626 also outlines an optional extension for tokenized vaults utilizing ERC-20 tokens, offering functionality for depositing, withdrawing tokens and reading balances.
Each ERC-4626 vault is tied to a single reference ERC-20 token. To ensure consistency, an adapter or on-chain liquidity swap is used to convert other tokens into the reference token. This simplifies vault operations by maintaining one unified asset per vault.
The ERC-4626 standard streamlines integration across various DeFi platforms by providing a consistent structure for yield-bearing vaults. This reduces development complexity, unlocking access to yield in different applications with minimal specialized effort.
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