SOFT VISIONS: Interactive + Cross-Chain (ERC-7281)
We’ve been doing some research around some exciting ideas for future SOFT use cases, and a few have caused us to sit upright at attention. While feature development doesn’t always move the needle for our users, we’re pretty sure this one is a game-changer. It seems that implementing the ERC-7281 standard could redefine how we interact with SOFT across various EVM-compatible protocols.
The xERC token standard, also known as ERC-7281 has big implications and multiple use cases for a project like SOFT. Imagine transferring your tokens across chains seamlessly, without the headaches of slippage or compromising security. Then imagine not needing to migrate SOFT to its native chain in order to participate in governance initiatives. THen imagine being able to claim rewards for SOFT while keeping your tokens on an L2 or alt L1…
This isn’t some kind of pie in the sky fantasy which’ll require extensive development—it’s a reality already made possible by xERC tokens.
What Makes xERC20 Tokens So Useful to SOFT?
xERC20 tokens embody the epitome of cross-chain functionality, allowing for slippage-free transfers without tying you to a single bridge’s security model. This innovation ensures your tokens remain under your control, offering unparalleled flexibility and freedom across multiple EVM-compatible protocols.
Why xERC20 for wstSOFT or wppSOFT?
The current SOFT framework, constrained to on-chain governance and staking within the Ethereum main net, is ready for an evolution. By embracing xERC20, we’re not just enhancing cross-chain voting and governance; we’re setting the stage for voting and governance, we’re also looking into staking, voting while vesting, distributions/rewards, claims, and exploring the possibility of implementing cross-chain swaps.
Clearly Defined Upside:
Fig. 1.1: xERC b2b UX plan, SOFT feedback loop
- Cross-Chain Sovereignty: Maintain absolute control over SOFT tokens across any chain, deciding on trusted bridges without permanent ties.
- Granular Security Control: Better security, less counterparty risk with a boost in user/community confidence.
- Slippage-Free Transfers: Predictable pricing, near-zero slippage during transfers (and eventually swaps)
- Scalability: Can be implemented across a handful of chains and rollups not yet in use by SOFT, while also ensuring liquidity doesn’t suffer from bottlenecks or logistical trade-offs.
- Fungibility: SOFT can address fungibility challenges ahead of schedule by standardizing token representations across bridges.
SOFT Implementation
Adopting xERC20 seems like a Sisyphean technical task but in reality is seemingly very straightforward. At its core, the process involves creating a “Lockbox” contract to wrap tokens into xERC20, allowing us to create minting limits for each bridge based on confidence around security and trust.
Fig 1.2: RTM Implementation
Simple Setup, Immediate Impact:
Whether its SOFT or any other new token - one that’s already on-chain, or a cross-chain token spanning multiple protocols - the setup process seems to be designed for clarity and minimal constraints regardless of dev expertise or skill level:
- Define the Token’s Home Chain: Pinpoint where your token primarily resides. In the case of SOFT, we will remain on Ethereum mainnet for the time being.
- Deploy SOFT xERC20 Tokens: Easily deployable across multiple already-implemented chains or future target chains, SOFT can ensure its cross-chain efforts and multi-chain tokens are ready for use when deployed.
- Leverage Lockboxes for Existing Tokens: Seamlessly integrate existing tokens with the xERC20 standard through a xERC’s simple wrapper mechanism.
xERC Standard Supported Chains (https://www.connext.com)
Now? Why?
The required dev time or required technical “lift” to adopt xERC20 is minimal compared to the massive utility it unlocks. Fast, secure, and slippage-free multi-protocol interactions are not just beneficial—they’re essential for a thriving, interconnected cross-chain ecosystem. If SOFT plans to expand its SDK and future product developments and features across multiple L1s and L2s this then seems like a no-brainer.
Looking forward to hearing additional thoughts, suggestions, constructive criticism, etc from the SOFT community about additional utility or use cases, as well as bringing forth any potential challenges, impediments, or unforeseen impact this could create for SOFT.
We Want to hear from you. Weigh in. SOFT Voices Matter:
As previously mentioned, Forum Discussion posts like this are more than a preliminary pre-proposal leading up toa. vote. Posts like this are a call to action for all SOFT community members. The community and governance members’ insights, feedback, and participation is invaluable as we push forward to possibly embarking together on this exciting initiative.
Let’s shape the future of SOFT together, by collaborating and providing honest feedback we can avoid governance lags while breaking down barriers that usher in an era of unfettered cross-chain collaboration for everyone.
Join the Discussion:
Dive deeper into the xERC20 standard, explore the technical nuances, and share your thoughts. Your engagement will drive SOFT’s journey into this bold new world of cross-chain interaction.
Collectively we can better leverage the potential opportunities granted by increased interconnectivity in an ever-changing ecosystem. As an industry we’ve always taken pride in pushing boundaries especially when it comes to innovative disruption.
We’ll be eagerly awaiting your feedback, questions, and ideas as they begin to trickle in. Join us in helping the industry build a better tomorrow.
To learn more about what we’re up to at SOFT use the links below:
SOFT Governance forum: https://forum.thesoftdao.com
SOFT X.com: https://twitter.com/thesoftdao
Connext xERC: xERC20 - Connext Network
Documentation/Setup Guide: Detailed Setup Guide | Technical Docs
xERC Github: GitHub - connext/xERC20