Thread by @SCBuergel

Short 🧵 on #EIP4626: the tokenized vaults standard that will be used by everyone & their mom
eips.ethereum.org/EIPS/eip-4626

Authored by the finest sers
@joey__santoro (@feiprotocol)
@transmissions11 (@paradigm)
@JetJadeja (@RariCapital)
@alcueca (@yield)
@fubuloubu (@ApeFramework)
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EIP4626 aims to standardize tokenized vaults. Wat mean?

A vault is a contract into which you deposit some token, e.g. you deposit DAI into @Compound in order to earn yield on those DAI
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Many of these vaults are tokenized. E.g. Coumpound mints cTokens (cDAI for your deposited DAI), @AaveAave mints aTokens, etc

What sucked is that everyone implemented their own tokenized vaults and we didn't even have a standard interface

EIP4626 fixes this
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EIP4626 has basically two types of tokens:
- `asset`: the token that you deposit
- `share`: the tokenized representation of your deposit

That means EIP4626 *is* in fact a token (the share, ERC20)
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EIP4626 allows you to do two fundamental operation:
- deposit assets & mint shares
- withdraw assets & redeem shares

Here it gets a lil confusing because you can choose if you want to deposit or mint / withdraw or redeem, why so complicated, ser?!
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Because depending on the usecase you might want to

withdraw an *exact* amount of underlying asset tokens (contract will redeem the corresponding amount of share tokens)

or you want to redeem the *exact* amount of shares (contract will withdraw the corresponding assets)
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Now show me the code!
All the usual suspects are working on implementations of the EIP4626 standard, e.g.:

@RariCapital / @transmissions11:
github.com/Rari-Capital/s…

@OpenZeppelin / @amxx:
github.com/OpenZeppelin/o…
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The usecases for this EIP are endless - I review it for the next @hoprnet staking program (with NFT boosts for community supporters) and decouple economic from technical risks

But you can really use it for any sort of tokenized deposits, lending platforms, yield assets...
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As always, this is the frontier and there be dragons 🐉

You are not alone, we're in this together but as with all new shiny things, there WILL be exploits and significant losses of funds, so please be careful 🙏
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