Blockchain Developer Token Standards and NFTs 5

Question 1

What does the ERC-4626 standard define?

Accepted Answer

A tokenized vault standard for yield-bearing tokens

Answer

ERC-4626 standardizes interfaces for vaults that issue shares representing deposited ERC-20 assets.

Question 2

In ERC-4626, what does the convertToShares function estimate?

Accepted Answer

How many vault shares a given amount of underlying assets is worth

Answer

convertToShares returns the share amount corresponding to a deposit of underlying assets at current rates.

Question 3

What is a 'soulbound' token?

Accepted Answer

A non-transferable token bound to a single address

Answer

Soulbound tokens (SBTs) are designed to be non-transferable, representing identity or credentials.

Question 4

What does ERC-4907 add to the ERC-721 NFT standard?

Accepted Answer

A rental role with a user and expiry separate from the owner

Answer

ERC-4907 introduces a 'user' role with an expiration, enabling NFT rentals without transferring ownership.

Question 5

Why is wrapping (e.g., WETH) used in token ecosystems?

Accepted Answer

To make native ETH conform to the ERC-20 interface

Answer

Native ETH isn't ERC-20 compliant, so WETH wraps it 1:1 to interact with ERC-20-based contracts.

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