A leading cross-chain bridge Connext partners with Alchemix to introduce a new token standard on Ethereum. The xERC-20 token standard is proposed to empower its issuer with greater and customized minting controls.
According to the official announcement from Connext, this new token standard will reduce liquidity cost for token issuers and provide granular security. The token standard will further enable issuers to manage bridges, setting minting limits and allowing selected bridges to mint identical tokens.
“We’re wholeheartedly embracing xERC20 at Connext because we envision a secure and innovative future for tokens and blockchain communication,” says the announcement. “As the HTTP of Web3, we’re all about making blockchain apps more user-friendly & minimizing security risks.”
Alchemix, a DeFi protocol offering self-repaying loans, is a pioneering partner to adapt xERC20. Connext says its system, described as ‘relaying on canonical bridges without third party validator set or oracles,’ aligns with Alchemix’s objective of progressive decentralization.
By introducing xERC20 tokens, Connext is aiming to secure DeFi bridges against exploits.
The solution is put forward specifically for bridges as it is targeted more often by hackers. Recently, the Multichain bridge suffered a security breach resulting in loss of approximately $130 million.
