What Is The ERC-4626 Token Standard (Tokenized Vaults)?
The ERC-4626 standard is a highly efficient protocol designed to optimize and standardize the interface for yield-bearing tokens (Tokenized Vaults). It ensures that any vault token adhering to the standard can be instantly integrated and used by any other DeFi protocol, simplifying composability and reducing audit risk.
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đź•’ 7:25 PM
đź“… Oct 29, 2025
✍️ By Nathanael707
Defining the ERC-4626 StandardERC-4626 is not a new token type but a wrapper interface that standardizes how DeFi "vaults"—contracts that accept deposits and generate yield—function. By standardizing the methods for deposit, withdrawal, and calculating yield, it makes DeFi modular and easier to build upon.
Standardization: Creates a universal interface for all yield-bearing vaults.
Efficiency: Simplifies the integration of new strategies and products, as any 4626 vault can plug-and-play with any 4626 aggregator.
Token: The vault issues an interest-bearing token representing the user's share of the vault's total assets and accumulated yield.
Benefits for DeFi Composability
The standard significantly reduces the integration and security costs for both developers and users.
Reduced Audit Surface: Developers don't need to audit the core vault logic of every new protocol; they just audit the 4626 interface.
Easier Aggregation: Allows yield aggregators to easily switch between different vaults to chase the highest return.