EIP-7540 Would Introduce Asynchronous Deposit on Ethereum Network

According to reports, a new Ethereum Improvement Proposal, EIP-7540, to introduce asynchronous deposit and redemption flows has been submitted. The introduction will come as an extension to the existing ERC-4626 tokenized vault standard.

A new Ethereum Improvement Proposal, or EIP, aims to introduce asynchronous deposit and redemption flows as an extension to the existing ERC-4626 tokenized vault standard. This EIP has the potential to benefit protocols that deal with real-world assets (RWAs), cross-chain lending…

— Wu Blockchain (@WuBlockchain) October 21, 2023

Colin Wu, a renowned Chinese reporter on crypto matters, recently posted that the EIP has the potential to benefit protocols that deal with real-world assets (RWAs), cross-chain lending, and liquid staking.

Details of EIP-7540 were made available on the Ethereum-magicians platform and included basic information about the newly proposed EIP. The authors of EIP-7540 include Jeroen Offerijns, Alina Sinelnikova, Vikram Arun, and Joey Santoro. These authors submitted the EIP-7540 proposal draft on Thursday, October 18, 2023, as a standard track type ERC-4626 protocol.

Further reports explained that the ERC-4626 is a standard that introduces parameters for yield-bearing vaults made for Smart Contract platforms that execute strategies. The smart contracts are also involved with providing rewards for token depositors.

According to the authors of the EIP-7450 proposal, it will enable the addition of new methods to asynchronously request a deposit or redemption and view the pending status of the request. The existing deposit, mint, withdraw, and redeem ERC-4626 methods are used for executing claimable Requests. Implementations can also add asynchronous flows for deposits, redemptions, or both.

The proposal authors also explained that yield-bearing tokens will become more composable across decentralized finance using the ERC-4626 Tokenized Vaults standard optimized for atomic deposits and redemptions up to a limit. Once the limit is reached, no new deposits or redemptions can be submitted.

An Ethereum user, Boom.X, who responded to Wu’s post on the EIP-7540 proposal, thinks Ethereum will have more significant improvements in the future. According to Boom.X, future EIPs would address the current limitations of the Ethereum network, especially reducing gas fees.

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