• Alchemix and Connext say the brand new token normal will profit token issuers.
• DeFi bridges fell sufferer to exploits, stealing over $2 billion in 2022.
• The multi-chain bridge, which lately introduced will probably be shutting down, is amongst these scheduled to be drained this 12 months.

DeFi protocol Alchemix and cross-chain bridge Connext have partnered in an effort aimed toward introducing sturdy safety to crypto bridges.

As introduced by Alchemix, the 2 platforms are working collectively to develop a brand new Ethereum token normal referred to as xERC-20.platform clearly shifting on monday.

We’re very excited to just accept this initiative. #xERC20 A token normal that fosters open competitors and innovation. Decreased Liquidity Prices for Token Issuers + Granular Safety 🙌.@AlchemixFi is the primary rent by way of @ConnextNetworkadopted by many extra pioneers.

1/9 pic.twitter.com/ujUCVjhTY9

— Connext (@ConnextNetwork) July 24, 2023

xERC20 Token Normal Improves DeFi Bridge Safety

Based on Alchemix and Connext, the brand new token normal empowers token issuers in a number of methods, together with managing bridges, setting mint limits, and permitting particular bridges to entry an identical token mints.

“It’s a bridge-agnostic public good that requires minimal or no customized work that the majority ecosystems assist.‘” Connext identified.

“At Connext, we embrace xERC20 wholeheartedly as we envision a safe and modern future for token and blockchain communications. As HTTP for Web3, we’re dedicated to creating blockchain apps extra user-friendly and minimizing safety dangers.”, added the protocol to the main points shared on X.

Based on the group, tasks utilizing Connext to introduce the brand new xERC20 token normal will profit from elevated safety towards potential DeFi exploits. There’s additionally a 1:1 token switch between chains with no slippage.

This integration comes not lengthy after a multi-chain bridge was compromised in an assault that resulted in practically $130 million in losses. The protocol lately introduced that it could stop to function.

Linkage evaluation report Over $2 billion in crypto property had been stolen in 2022 by exploiting this token bridge. We proceed to see such vulnerabilities this 12 months, siphoning thousands and thousands of {dollars} from platforms because the business grapples with rising hacks.