Ethereum Foundation recently announced adopting the ETRC-3475 standard by D/Bond, and the adoption will help Ethereum add value to its ecosystem and infrastructure.
After carefully debating and evaluating the proposal, Ethereum is ready to present the standard to EF experts and DeFi & Web 3.0 enthusiasts. Now, the EIP-3475 has been accepted as an API standard to issue bonds alongside redemption data.
ERC-3475 by D/Bond allows users to create custom-made bonds needed by the DeFi domain. Decentralized bonds are expected to succeed in the asset class of staking and swaps.
With D/Bond releasing the Abstract Storage Bonds standard, the DeFi industry is gaining additional value. It promotes decentralized bands and new standards to address the issues posed by existing standards.
For example, ERC-20, the most-used token standard, is limited in issuing bonds. It represents one entity and requires the release of token contracts based on the token type.
Bonds also come with specific types and are segmented into different classes. A suitable example would be mentioning a fixed-rate basis bond like Olympus DAO and one guarantee for loan bond, Societe Generale.
The incompatibility of different bond classes with available token standards made issuing bonds challenging for DeFi projects. Moreover, issuing bonds backed by liquidity tokens like ERC-20 became almost impossible.
That is why most DeFi projects lack the fixed-rate functionality feature. D/Bond’s Abstract Storage Bonds standard has in-built functions to incentivize their gas fees. The ERC-3475 token standard uses the multi-layer pool for bigger liquidity providers to establish multiple pairs.
It even removes the need to distinguish contracts every time new pairs are added to avoid common issues. It can be seen as an upgraded ERC-20 token, creating a multi-faceted token that gathers metadata on-chain.
This way, D/Bond offers a new asset class to help users, institutions, and the entire blockchain industry improve DeFi operations globally.