Arjun Bhuptani, founder of the Connext bridging protocol, in a social media post on July 7 attempted to standardize the way tokens are bridged between networks, dubbed “Sovereign Bridged Token” or EIP-7281, which would prevent the problem. such as the Multichain event on July 6
Today’s @MultichainOrg The hack is a sad reminder of the systemic risks tokens face from bridges.
We believe these risks stem from a single underlying problem:
Token Sovereignty
We’re proposing ERC-7281 (aka xERC20) – an open standard to fix this.https://t.co/k9Vyd55Eb5
1/x
— Arjun | ERC-7281 arc
(@arjunbhuptani) July 7, 2023
EIP-7281 will allow token issuers to define an acceptable list of bridges and limit the rate at which they can generate tokens. This may limit losses from bridge hacks.
In Bhuptani’s view, this proposal will ensure that “Ownership of the token has been moved out of the bridge into the hands of the token issuer itself,” and losses will be limited if the bridge’s security is compromised.
“In the event of a hack or vulnerability from a given bridge (such as the current multichain hack), the issuer’s risk is limited to that bridge’s rate limit, and the issuer can seamlessly revoke the bridge. Without having to go through a time-consuming migration.”
Bhuptani said the proposal would help prevent user problems in decentralized finance since all bridges will officially issue the same token. and over time This eliminates the need to use multiple versions of the same token.
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