EIP-3475 from D/Bond would allow lenders to issue derivatives on outstanding loans, forming new bonds from them

Ethereum network to introduce a new token standard for bond issuance

25.08.2022 - 14:00


1 min

What’s new? D/Bond has created a new token standard to introduce bonds and add value to the existing Ethereum infrastructure and ecosystem. Abstract Storage Bonds (EIP-3475) was adopted by the Ethereum Foundation as the new standard for the application programming interface (API). The new solution will allow lenders to issue derivatives on outstanding loans, forming new bonds from them and combining risk and return parameters.

Information on the D/Bond blog

What else is known about the new standard? According to experts, decentralized bonds will be the next asset class after swaps and staking. For borrowers, the main advantage of the new standard over other credit DeFi-protocols is that it will allow them to distribute credit risks among liquidity providers. At the same time, collateral will not have to be liquidated if its value falls below a certain threshold. The developers stated that “ERC-3475 is exactly what DeFi needs right now.”

D/Bond is a Web 2.0 DeFi platform where users can develop and issue individual bonds and financial derivatives as well as trade them.

Earlier, Ethereum Foundation representatives announced an increase in rewards for participants in the Bug Bounty program. Within its framework, users are paid for the detection of vulnerabilities in the network upgrade. Participants will receive up to $1 million when critical bugs are detected in the upcoming Merge.

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