Connext and Alchemix launch cross-chain token standard to reduce bridge operating losses

Both protocols will implement a standard allowing issuers to control the "canonical" minting of tokens, helping to reduce losses from unofficial bridges.

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Cross-Chain Bridging Protocol Connext has announced a new token standard to reduce losses from bridge hijacking. According to a July 24 announcement, the new "xERC-20" standard allows token issuers to maintain a list of official decks and control how many tokens each can mint.

In addition to Connext, decentralized finance (DeFi) platform Alchemix Finance will implement xERC-20 tokens, the announcement said.

Connext Alchemix

Today, Connext announces support for the xERC20 standard and integration projects to securely bring their tokens to every chain.

As a light user, we worked with @AlchemixFi to bring $alUSD, $alETH and $ALCX to @arbitrum and @optimismFND. https://t.co/S2tBLpuuqe

— Arjun | Arc xERC20 (@arjunbhuptani) July 24, 2023

The new token standard was originally introduced on July 7 as Ethereum Improvement Proposal (EIP) 7281. It was co-authored by Connex...