The ERC-7621 Token Standard is an innovative protocol implemented by the Alvara Protocol, reshaping fund management.
This standard enables the creation of basket tokens on the blockchain, containing multiple ERC20 tokens.
Key features of ERC-7621 include the Basket Token Standard (BTS), representing a unique composition of various underlying ERC20 tokens, transferable management rights on-chain, and the use of ERC721 standard for ownership representation of BTS.
Additionally, it introduces ERC-7621 LP tokens for DEX/CEX listings, staking, lending, and governance protocols.
ERC-7621 addresses existing challenges such as lack of transparency, excessive centralization, management complexity, limited accessibility, and delay issues.
However, it comes with limitations like high gas fees and restricted compatibility.
The new standard enhances investment flexibility, simplifies portfolio management, improves liquidity, and ensures transparency.
ERC-7621 paves the way for effective, adaptable, and user-friendly tokenized investment fund management in response to challenges posed by centralized solutions.
