Introducing ICON’s Cross-chain Token Standard
Gone are the days when ICON's cross-chain strategy relied on wrapped token swaps. While wrapped assets were essential for their time—enabling assets to move to new blockchains and laying the groundwork for cross-chain transfers—they had their limitations. Wrapped assets played a crucial role in expanding DeFi into a multichain framework and will likely always have a place. However, the wrapped asset model has inherent drawbacks. The primary limitation is that these assets are non-fungible across different interoperability protocols since each protocol deploys wrapped assets on behalf of a project. This results in completely different, non-fungible assets for each route taken, leading to liquidity fragmentation, an undesirable user experience, and less efficient markets.
ICON’s new direction focuses on offering users native transfers. Similar to how we deployed bnUSD, we aim to provide this functionality to all projects' liquidity on Balanced. If a project chooses Balanced for its liquidity, we can offer its token on any of the Balanced-connected chains, delivering a native experience.
It's important to note that this cross-chain standard will adhere to ICON’s token standard framework and to ERC20 standards for tokens on the EVM chain.
Why is this significant?
This standard, integrated through ICON’s cross-chain DEX, Balanced, allows any project to launch its token on any blockchain connected to Balanced. This means the project only needs to deploy liquidity into a single pool rather than multiple pools across different chains. This approach maximizes the efficiency of liquidity usage and gives the project greater control over its tokens. They gain the ability to own, upgrade, and customize their tokens across various blockchains, streamlining operations and enhancing scalability.
This standard builds upon the foundational framework of Balanced's bnUSD. Venture23 will lead its development and implementation, with funding approved through ICON’s Contribution Proposal System (CPS). Initially, the focus will be on the ICON, EVM, and SUI Move platforms, with all development and implementation targeted for completion within approximately two months. Stay tuned for further updates.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPBitget VIP Weekly Research Insights
Real World Assets (RWAs) bring real-world financial instruments such as bonds, real estate, and credit onto the blockchain, enabling tokenization, programmability, and global accessibility of traditional financial assets. With U.S. interest rates peaking, monetary policy turning dovish, and ETFs paving the way for institutional capital to enter the crypto space, RWAs have emerged as a leading theme capturing growing institutional attention.
VIPBitget VIP Weekly Research Insights
The Base chain has recently seen several major strategic developments: Coinbase has integrated DEX routing for Base on its main app, bridging the gap between CeFi and DeFi liquidity; Shopify has partnered with Base to expand real-world applications and user access points. At the same time, Circle and Coinbase stocks have surged by over 700% and 50% respectively, creating a wealth effect that may spill over into the Base ecosystem—boosting both its TVL and token prices. Recommended projects include: 1) AERO (Aerodrome)—The leading DEX on Base, showing strength despite market downturns; well-positioned to benefit from Coinbase integration. 2) BRETT—A flagship memecoin on Base with over 840,000 holders; likely to lead the next Base memecoin rally. 3) New tokens on Bitget Onchain—Offer early access to emerging Base memecoins while helping users avoid high-risk tokens.
VIPBitget VIP Weekly Research Insights
Recent bullish news surrounding a potential Solana ETF has reignited market optimism. The SEC has asked issuers to update their S-1 filings, signaling that ETF approval could be near. This development has boosted confidence in the Solana ecosystem. As a high-performance Layer-1 blockchain, Solana (SOL) offers fast transactions and low fees, making it a hub for DeFi and NFT activity, while also drawing increasing institutional interest. Jito (JTO), the leading liquid staking protocol on Solana, saw its token surge 17% after JitoSOL was included in a Solana ETF prospectus. Its MEV optimization further enhances network value. Jupiter (JUP), Solana's top DEX aggregator with a 95% market share, recently launched a lending protocol, highlighting strong growth potential. These tokens offer investors early exposure ahead of a possible ETF approval and a chance to benefit from Solana's expanding ecosystem.
Trending news
MoreCrypto prices
More
