💡ERC314

ERC314

ERC314 is a new experimental token standard that aims to expand on the ERC20 standard.

The ERC20 token standard as done by security operations platforms, such as OpenZeppelin, contains a basic set of capabilities such as tracking token supply, balances, approvals, minting, burning, and transfers.

The primary use case for ERC20 tokens is to trade for other tokens such as ETH, wBTC (wrapped BTC), or other ERC20 tokens through a DEX (decentralized exchanges) such as Uniswap, Sushiswap, or TraderJoe.

This additional layer(s) required by the standard ERC20 tokens to be able to swap adds increased gas costs, increased vulnerability to MEV (bot) attacks, and requires users to interact with third-party contracts.

ERC314 Benefits

Built-in features such as AMM (Automated Market Maker), Enhanced MEV (bot) protection, self-contained liquidity, and direct swapping improve upon the ERC20 standard.

• No additional approvals: Since ERC314 swaps are handled by the token contract itself, no approvals are necessary which reduces gas costs benefitting the user. Traditional DEXes require approval of the token to the router contract before swaps can take place.

• Enhanced MEV protection: Since token swaps are directly via the ERC314 contract it reduces the ability for MEV attacks.

• Swap via Transfers: Swap tokens without even needing to connect your wallet to a dApp by simply sending the token or native currency to the contract address. It will calculate and return the swapped amount automatically.

• Liquidity: Owners can add liquidity directly instead of relying on third-party contracts.

These additions over the traditional way that tokens are swapped aim to reduce gas fees and number of interactions required by users.

⚠️ Important Considerations:

Keep in mind, our cost-saving estimates compare ERC314 with traditional ERC20 tokens, which don't include additional features that might increase gas costs, like fees or max wallet holdings. Therefore, swapping with ERC314 could potentially save you even more—or slightly less—depending on these factors.