• The Ethereum Foundation has approved EIP-3475, which will allow bonds to be issued on Ethereum

  • The Ethereum Foundation has finally approved the EIP-3475 proposal for Ethereum bonds (ETH). After being accepted as a new Application Programming Interface (API) standard, the proposal became the ERC-3475 standard. The new standard will accelerate the adoption of Web 3.0 and DeFi.

    Individuals and institutions will be able to issue bonds and derivatives in secondary markets thanks to the ERC-3475 standard.

    With the EIP-3475, the Ethereum Foundation introduces bonds on Ethereum.

    The Ethereum Foundation has adopted the EIP-3475 and accepted it as an API standard, according to an official announcement made by Debond Protocol on August 25. As a result, “bonds with multiple redemption data” can be issued. The Ethereum Foundation has been evaluating and debating the proposal for a long time.

    “The proposal had been evaluated and debated. Ultimately, it was deemed secure, complete, and ready to be presented not only to EF experts but to all Web 3.0 and decentralised finance (DeFi) enthusiasts.”

    The ERC-3475 standard will allow anyone to create their own Ethereum bonds. Debond Protocol believes that the standard will aid in the introduction of bonds while also adding value to the Ethereum infrastructure and ecosystem.

    Furthermore, the ERC-3475 standard will transform DeFi and Web 3.0, accelerating their adoption. Bonds on Ethereum will also be the next innovative asset class on DeFi, following swaps and staking. Because existing token standards cannot handle bonds, issuing fixed-rate instruments on blockchains has been impossible until now.

    The current ERC-20 standard is incompatible with issuing different types of bonds. It also does not permit the storage of reward and redemption logic on-chain. This results in higher gas prices.

    The ERC-3475 lowers gas prices.

    The ERC-3475 is an Abstract Storage Bonds standard that reduces Ethereum protocol gas fees. Furthermore, it eliminates the need for contracts to be issued each time a new LP pair is added. As a result, using a multi-layer pool helps to avoid common attack vectors such as an impermanent loss.

    Bond investment vehicles and exchanges are currently unavailable in the crypto market. D/Bond will aid in the introduction of bond trading, investing, lending, and borrowing on Ethereum.

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