Optimism Introduces New Superchain Token Standard
Optimism, an Ethereum Layer 2 (L2) scaling solution building an ecosystem of interconnected networks called the Superchain, has introduced a token standard for cross-chain tokens, the SuperchainERC20.
SuperchainERC20 is a cross-chain token interface based on the ERC-7802 token standard that enhances asset interoperability within the Superchain, Optimism said in a Dec. 8 post on X.
Assets created using SuperchainERC20 can move freely across the Superchain without relying on wrapping or liquidity pools. This aims to unify liquidity, improve user experience across the Superchain, and introduce new possibilities for assets to achieve new use cases.
“Builders can deploy SuperchainERC20 compatible tokens right away and get prepared for Superchain Interop.” The Optimism official account said on X. “This is recommended for all new tokens deployed on the Superchain in order to be interoperable on day one.”
Optimism is the third-largest Ethereum L2 by total value locked (TVL), behind only Base and Arbitrium. Its 8.89 transactions per second (TPS) also places it below those two in terms of throughput.
How it Works
SuperchainERC20 enables secure cross-chain asset transfers within the Superchain through native burning and minting.
When a user initiates an asset transfer across two separate chains, the specified amount is burned or destroyed on the source chain and minted on the destination chain. This enables seamless asset movement and eliminates the need for traditional means like wrapping and liquidity pools.
The token burning and minting process only affects the chain where the asset lives. It does not change the overall supply of the token, ensuring that its total supply remains the same across all networks and its value remains stable during the transfer.
SuperchainERC20 unlocks several new use cases for cross-chain tokens, such as token composability across cross-chain apps, cross-chain borrowing/lending, and removal of liquidity constraints from bridges.
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