Alchemix, Connext undertake xERC20 token commonplace for bridge safety

• Alchemix and Connext say the brand new token commonplace will profit token issuers.
• DeFi bridges suffered exploits that noticed over $2 billion stolen in 2022.
• Multichain bridge, which not too long ago introduced it was ending operations, is amongst these to be drained this yr.

DeFi protocol Alchemix and cross-chain bridge Connext have partnered in an effort that goals to introduce strong safety to crypto bridges.

As introduced by Alchemix, the 2 platforms are working collectively on a brand new Ethereum token commonplace dubbed xERC-20. The platforms revealed the transfer on Monday.

We’re extraordinarily excited to embrace the #xERC20 token commonplace that encourages open competitors & innovation. Lowered liquidity prices for token issuers + granular safety 🙌.@AlchemixFi is the first adopter by way of @ConnextNetwork, with extra trailblazers to observe!

1/9 pic.twitter.com/ujUCVjhTY9

— Connext (@ConnextNetwork) July 24, 2023

xERC20 token commonplace will increase DeFi bridge safety

Per Alchemix and Connext, the brand new token commonplace empowers token issuers in a number of methods, together with in bridge administration, setting of mint limits, and permitting sure bridges to entry an identical token mints.

“It’s a bridge-agnostic public good and requires minimal or no customized work for many ecosystems to assist,” Connext famous.

“We’re wholeheartedly embracing xERC20 at Connext as a result of we envision a safe and progressive future for tokens and blockchain communication. Because the HTTP of Web3, we’re all about making blockchain apps extra user-friendly & minimizing safety dangers,” the protocol added in particulars shared on X.

In line with the workforce, initiatives that deploy the brand new xERC20 token commonplace with Connext profit from elevated safety in opposition to potential DeFi exploits. There’s additionally 1:1 token transfers between chains with zero slippage.

The combination comes not lengthy after the Multichain Bridge was breached in an assault that noticed it lose near $130 million. The protocol not too long ago announced it was halting operations. 

Chainalysis reported that token bridge exploits noticed greater than $2 billion in crypto belongings stolen in 2022. This yr has continued to see such vulnerability, with tens of millions siphoned from platforms because the sector grapples with elevated hacks.