Ethereum Foundation Approves EIP-3475 To Bring Bonds On Ethereum


The Ethereum Foundation has approved EIP-3475 to bring bonds on Ethereum. The Debond Protocol, in an official announcement on August 25, revealed that the Ethereum Foundation has accepted EIP-3475 and adopted it as an API standard. Thus, it became possible to “issue bonds with multiple redemption data.” The proposal has been evaluated and discussed by the Ethereum Foundation for a long time. The new standard will drive further adoption of Web 3.0 and DeFi.

The ERC-3475 standard will allow the creation of custom-made bonds on Ethereum. Debond Protocol believes the standard will help bring bonds into the market and add value to the Ethereum infrastructure and ecosystem. In addition, Ethereum bonds will be the next innovative asset class in DeFi after swaps and staking. Until now, issuing fixed-rate instruments on the blockchain has not been possible because existing token standards cannot handle bonds.

The ERC-3475 standard reduces gas fees in the Ethereum protocol. Moreover, it eliminates the need to issue contracts every time a new LP pair is added. Thus, using a multilayer pool helps avoid common attack vectors such as non-permanent loss.

Image: 3DNews

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