A new Ethereum Improvement Proposal, or EIP, aims to introduce asynchronous deposit and redemption flows as an extension of the existing ERC-4626 tokenized vault standard.
ERC-4626 itself is a standard designed to introduce parameters for yield-bearing vaults. These vaults are smart contract platforms that execute strategies and provide rewards to the token depositor.
However, the standard is designed to ensure that the vaults are atomic, meaning that swaps have a deposit and redemption limit. Another way to explain atomic vaults is “all or nothing”: if X happens, Y must happen at the same time.
In an interview with Blockworks, Asad Khan, a DeFi politician at Centrifuge, explains that in atomic transactions, a user who deposits something to borrow immediately receives a token representing what they share.
In this case, EIP-7540 would ensure that asynchronous deposits and redemption flows are possible.
This EIP, according to Khan, has the potential to benefit protocols dealing with real-world assets (RWAs), cross-chain lending and liquid staking.
“The asynchronous request is where you deposit a token, and you may not get the token back until the request is completed later. This can be based on a number of parameters,” Khan said.
An example of an asynchronous request would be: if X happens, Y can only happen under the conditions that Z is met.
In this case,
As it stands now, Khan explains, each RWA protocol deals with its own unique off-chain processes. The goal of EIP-7540 would be to standardize how protocols can handle these on- and off-chain transactions.
However, asynchronous transactions can potentially lead to greater security risks. ERC-4626 vaults are atomically designed to prevent one party from controlling multiple assets at the same time.
Jeroen Offerijns, Centrifuge’s Chief Technology Officer and co-author of EIP-7540, told Blockworks that asynchronous deposit and redemption flows are inherently more complex than atomic flows when it comes to implementation due to the additional state transitions required.
“More attention should be paid to extensively testing the flows and auditing each asynchronous vault implementation,” Offerijns said. “Standardizing can help by creating reusable test suites for properties, similar to what was developed for ERC-4626.”
Offerijns noted that asynchronous flows will increase pressure on protocols that ensure fair request execution. Offerijns added that Cenfrigue has built an era mechanism that can aggregate orders and even the request playing field and protect against front running.
EIP-7540 is still in its early stages. The proposal must first be discussed on the Ethereum Magicians forums before moving to the next phases.
“Once consensus is reached, the proposal will move to an assessment, a final call and ultimately a final phase, after which it will be accepted,” Offerijns said.