Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Introducing ICON’s Cross-chain Token Standard

Introducing ICON’s Cross-chain Token Standard

Icon Foundation Blog2024/06/25 11:18
By:Icon Foundation

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.

Introducing ICON’s Cross-chain Token Standard image 0

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.

0

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.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Under pressure, Trump’s crypto czar divests his $200M+ crypto holdings

David Sacks divested over $200 million in digital-asset holdings to avoid conflicts of interest. Senator Elizabeth Warren criticized Sacks, questioning his crypto holdings. Sacks’ divestment details were revealed shortly before Warren’s letter requesting crypto ownership clarification.

CoinEdition2025/03/14 16:00
Under pressure, Trump’s crypto czar divests his $200M+ crypto holdings

Smart Contract Risks Could Be Global Finance’s Ticking Time Bomb, Warns Movement Labs Co-Founder

Cooper Scanlon emphasizes the serious vulnerabilities in blockchain infrastructure, especially Ethereum, highlighting the growing threat to global finance and calling for secure innovations like Move programming.

BeInCrypto2025/03/14 11:00
Smart Contract Risks Could Be Global Finance’s Ticking Time Bomb, Warns Movement Labs Co-Founder

VIPBitget VIP Weekly Research Insights

Over the past month, the cryptocurrency market has faced a downturn due to multiple factors. Global macroeconomic uncertainties, such as shifts in U.S. economic policies and the impact of tariffs, have heightened market anxiety. Meanwhile, the recent White House crypto summit failed to deliver any significant positive news for the crypto market, further dampening investor confidence. Additionally, fluctuations in market sentiment have led to capital outflows, exacerbating price declines. In this volatile environment, selecting stable and secure passive-income products is more crucial than ever. Bitget offers solutions that not only provide high-yield fixed-term products but also flexible options for users who need liquidity. Furthermore, with the added security of the Protection Fund, investors can earn steady returns even amidst market volatility.

Bitget VIP2025/03/14 06:27
Bitget VIP Weekly Research Insights