Ethereum Developer Ethereum Token Standards and DeFi

Question 1

What EIP defines the ERC-20 fungible token standard?

Accepted Answer

EIP-20

Answer

EIP-721

Answer

EIP-1155

Answer

EIP-2612

Question 2

What function must an ERC-20 contract implement to allow a spender to transfer tokens on behalf of an owner?

Accepted Answer

approve()

Answer

transfer()

Answer

allowance()

Answer

mint()

Question 3

What is the key distinction between ERC-20 and ERC-721 tokens?

Accepted Answer

ERC-721 tokens are non-fungible and each has a unique ID

Answer

ERC-721 tokens have higher decimal precision

Answer

ERC-20 tokens represent ownership of NFTs

Answer

ERC-721 allows batch transfers by default

Question 4

What does AMM stand for in the context of DeFi?

Accepted Answer

Automated Market Maker

Answer

Autonomous Minting Mechanism

Answer

Aggregated Margin Model

Answer

Asset Management Module

Question 5

What formula does Uniswap v2 use to maintain liquidity pool balance?

Accepted Answer

x * y = k

Answer

x + y = k

Answer

x^2 + y^2 = k

Answer

x / y = k

Question 6

What is a flash loan in DeFi?

Accepted Answer

An uncollateralized loan that must be borrowed and repaid within a single transaction

Answer

A loan with a very low interest rate

Answer

A loan backed by NFT collateral

Answer

A loan that expires after one block