ERC-4626 Vault Standard

Tokenized Vault Standard

What is ERC-4626

ERC-4626 is a standardized smart contract interface for tokenized vaults on Ethereum and compatible blockchains. It defines a consistent way to build and interact with yield-bearing vaults, which are smart contracts that manage assets and distribute returns to depositors. The standard simplifies the process of depositing, withdrawing, and tracking assets in a vault, making it easier for developers, protocols, and capital allocators to integrate with these systems.

Why ERC-4626 Matters

The ERC-4626 standard streamlines capital allocation with a consistent vault structure that integrates seamlessly with DeFi platforms like lending protocols or trading systems. It eliminates the need for custom integrations, allowing allocators to deploy funds into various vaults effortlessly. Clear tools for tracking deposits, withdrawals, and profits make monitoring performance simple. By standardizing vault operations, ERC-4626 reduces risks from inconsistent designs, ensuring more reliable and secure capital deployment. The standard also separates deposited assets from ownership stakes, simplifying accounting for returns and ownership.