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.
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