Alvara leads implementation of new ERC-7621 token standard

ERC-7621 is a new token standard that facilitates building multi-asset tokenized baskets on-chain. This standard provides basic functionality that allows anyone to perform their own deployment. basket token Can include an unlimited number of native ERC20 tokens.

• Basket Token Standard (BTS): A unique token that contains any number of native ERC20 tokens.
• Transferable: By leveraging the ERC721 standard as a representative token of ownership, BTS and its associated management rights and fee revenues can be transferred on-chain.
• Alternative BTS LPs: The standard introduces the ERC-7621 LP token, a transferable ERC20 token that represents an individual’s stake in a basket. As fungible ERC20 tokens, the use cases for these LP tokens are much broader than simply representing a stake in BTS. It can be leveraged in any way that ERC20 can be used, including DEX/CEX listings, staking, lending and governance protocols, etc.
• Donations and Withdrawals: LP tokens are issued each time a new contribution is made to BTS. Conversely, LP tokens are burned whenever a withdrawal is made.
• Management Fee: ERC-7621 tokens can be coded to give BTS holders a % of TVL. This happens through a rebalancing feature at monthly intervals.
• Portfolio Adjustment: The rebalancing function allows administrators to adjust tokens and weights. Administrators can rebalance existing assets to their original weights or completely change the BTS configuration, adding or removing native tokens and adjusting weights within a single transaction.

ERC-7621 addresses several important issues in the current fund management industry.

• Lack of transparency: ERC-7621 tokens are on-chain, providing full transparency to everyone.
• Excessive centralization: ERC-7621 allows anyone, anywhere to become a fund manager and decentralizes control to prevent dominance by a few companies.
• Management Complexity: Simplify management by consolidating assets into a single tokenized basket.
• Limited accessibility: Opens investment opportunities to a wider audience and removes existing barriers.
• Latency issues: Designing and deploying a new ERC-7621 can be done in seconds.

• High gas rates: ERC-7621 token transactions such as creation, donation, and withdrawal can be gas intensive. L2 and cost-effective blockchain solve this problem.
• limited compatibility: As a new standard, not all wallets and chains currently support ERC-7621. As with any technological innovation, it may take time for the associated infrastructure to catch up.
• Lack of awareness: ERC-7621 is a new standard and is not yet widely known.

ERC-7621 introduces a number of features designed to enhance investment flexibility, simplify portfolio management, improve liquidity, and ensure transparency. ERC-7621 provides a more efficient, adaptable, and user-friendly approach to tokenized investment fund creation, management, and participation by solving the problems inherent in centralized (or decentralized, but “gated”) solutions. .