{"id":78115,"date":"2024-12-11T12:58:24","date_gmt":"2024-12-11T12:58:24","guid":{"rendered":"https:\/\/www.zeeve.io\/blog\/"},"modified":"2024-12-11T13:00:15","modified_gmt":"2024-12-11T13:00:15","slug":"superchain-erc20-simplifying-asset-interoperability-in-layer2-rollups","status":"publish","type":"post","link":"https:\/\/www.zeeve.io\/blog\/superchain-erc20-simplifying-asset-interoperability-in-layer2-rollups","title":{"rendered":"Superchain ERC20: Simplifying Asset Interoperability in Layer2 Rollups"},"content":{"rendered":"
After Superchain\u2019s successful projection of \u2018One Superchain, Many Chains\u2019, now Optimism<\/a> is offering a whole new concept of native interoperability with \u2018One Superchain, One Token\u2019 approach enabled through the SuperchainERC20 standard. Each project in the Superchain ecosystem\u2013 be it OP Stack Layer2<\/a>, Layer3, or Optimism dApps, can now implement SuperchainERC20 standard for their token and benefit from cross-chain experience Superchain rolls out its interop upgrade. Let\u2019s dive deeper and learn more about SuperchainERC20 and how it is simplifying rollup interoperability.<\/p>\n\n\n\n The entire concept of Superchain is based on enabling native interoperability, allowing isolated and unique chains to securely read messages and the state of other chains while seamlessly transferring assets across the Superchain ecosystem. What\u2019s more interesting is that these interoperability-related activities happen without needing the chains to interact with underlying Layer1. <\/p>\n\n\n\n This approach results in the following key benefits: In a practical sense, Superchain Interop allows users to easily and securely move cross-chain assets while retaining fairness through OP-governed security. <\/p>\n\n\n\n As a critical implementation of ERC-7802 (the next-gen cross-token interface standard), SuperchainERC20 offers an interface for enabling smooth cross-chain transfer<\/a> of assets in the entire Superchain ecosystem. SuperchainERC20\u2019s approach is simple; implementation of ERC-7802, no token wrapping, and no need for liquidity pools. <\/p>\n\n\n\n We already know that Superchain serves as a hub for unique Layer2s, each having its own unique features, tokenomics, and communities. At present, moving values (assets) across these chains requires certain process, for example- Lock & Mint technique, which is a hassle for both the users and the developers. <\/p>\n\n\n\n SuperchainERC20 is one of the top Superchain\u2019s key components to support native interoperability<\/a>, such as Superchain bridge, Message Passing Protocol, and <\/p>\n\n\n\n SuperchainERC20 standard. This native interoperability powers Superchain to feel like a borderless ecosystem that is optimized for superior user experience. Also, the fusion of SuperchainERC20 + Superchain interoperability will allow for maximized capital efficiency. Here\u2019s a simple breakdown:<\/p>\n\n\n\n Currently, $1M locked on 5 separate chains= requirement for $5M capital.<\/strong><\/p>\n\n\n\n With SuperchainERC20+ Superchain interop: $1M = accessible across all the chains. <\/strong><\/p>\n\n\n\n A good examples for this is NFT game where SuperchainERC20 allows a token on chain-1 to to be utilized on chain-2. Likewise, it will allow a token om chain-3 to get deposited in the liquidity pool in chain-4. With such easy interoperability, SuperchainERC20 expands the token utility scope by allowing assets to be leveraged in many different ways in different ecosystems. <\/p>\n\n\n\n Major components: <\/strong> <\/p>\n\n\n\n SuperchainERC20\u2019s technicality is quite similar to other token standards, but it stands apart with a different focus & implementation concepts that are explained here; <\/p>\n\n\n\n 1. Simplified deployments- <\/strong>with no liquidity pools or multiple interfaces, SuperchainERC20 requires zero infrastructure to offer cross-chain token transfers. Instead, it offers a unified interface for Superchain-compatible networks and a cross-chain common interface for the entire EVM ecosystem. 2. Permissionless propagation- <\/strong>Developers building on Superchain can quickly clone an existing token contract and utilize it for their OP Stack Rolllups<\/a> to enable cross-chain asset transfer. This does not require them to take permission from the original owner or fulfill any other obligations.<\/p>\n\n\n\n SuperchainERC20 replaces the traditional lock and mint mechanism with a novel native burning & minting approach. Whenever you move tokens, they are first burned (destroyed) on the source chain and minted (created) on the destination chain. Here\u2019s how the whole setup works: Step 1:<\/strong> User adds the recipient’s wallet address on the destination chain and the amount of tokens to transfer. <\/p>\n\n\n\n Step 2:<\/strong> The equivalent amount of tokens will be burned (permanently) on the source chain.<\/p>\n\n\n\n Step 1: <\/strong>After verifying the burn on the source chain, the specified amount of tokens is created (minted) on the destination chain.<\/p>\n\n\n\n Step 2: <\/strong>The newly minted tokens are sent directly to the recipient’s wallet address, as specified during the initiation of the transfer.<\/p>\n\n\n\n This will ensure that the recipient gets the tokens on the destination chain, allowing the transfer to finish while maintaining consistency in cross-chain token supply. <\/p>\n\n\n\n Through this burn & mint concept, Superchain affects only the assets on the source chain (the chain where your assets are located originally rather than impacting the overall token supply. Hence, it keeps the token amount same on all the networks while also ensuring its value remains stable during the cross-chain movement. This allows SuperchainERC20 to maintain a unified, global token supply count. <\/p>\n\n\n\n The above diagram has illustrated the whole process of SuperchainERC20, where tokens are getting burned on chain A (source chain) and minted on chain B (destination chain) for smoothing cross-chain transfers without needing asset wraps or a liquidity pool. <\/p>\n\n\n\n Implementing SuperchainERC20 standard ensures that your tokens will benefit from cross-chain interoperability element once the interop upgrade goes live on Superchain. Below are the important steps for a project or application developers to make their token compatible to SuperchainERC20 : 2. Implement IERC-7802 Interface- <\/strong>SuperchainERC20 requires implementing the IERC7802 interface, which includes the below two bridging functions: 3. Use SuperchainERC20 starter kit for deployment- <\/strong>The SuperchainERC20 starter kit offers a cloneable and handy repository that developers can use to inspect, test, and deploy SuperchainERC20. Also, you must go through the in-depth implementation details from SuperchainERC20 specifications<\/a> and common interoperability-related questions from Superchain Interop Explainer<\/a> section. <\/p>\n\n\n\n Here\u2019s an example of SuperchainERC20 implementation<\/a> with end-to-end details. 1. Gaming\/ NFT platforms<\/strong>: SuperchainERC20-powered NFT platforms<\/a> will have the ease to allow their users to mint an NFT on any chain from their desired chain. For example, an artist creates NFT on dApp like NFTs2Me or tofuNFT while their wallet resides on Base Layer2. This eliminates creators\u2019 hassle of transferring funds using centralized services or switching frequently between networks, enabling them a seamless interaction experience. 2. Swaps: <\/strong>With no dependency on exchange and intermediary tokens, SuperchainERC20 allows for easy & efficient chain-to-chain swaps, backed by unified liquidity and low slippage issues. 3. Bridging solutions-<\/strong> SuperchainERC20 removes all the liquidity constraints from the bridges using the mint & burn method. Like, a user can burns 10,000 DAI on Ethereum and mints 10,000 DAI on Zora, removing the need for any pre-funded liquidity pools on the bridge. 4. DeFi applications:<\/strong> SuperchainERC20 enables real-time cross-chain DeFi for all the involved chains. This allows users to stake tokens on chain A and simultaneously use the same tokens as collateral for borrowing on chain B. This way, SuperchainERC20 supports advanced DeFi strategies like cross-chain collateralization and farming with almost zero challenges.<\/p>\n\n\n\n 5. Flash loans:<\/strong><\/p>\n\n\n\n Also for DeFi platforms like crypto trading or exchange platforms, SuperhcainERC20 offers all the above benefits, plus novel arbitrage opportunities to ensure their efficient performance. <\/p>\n\n\n\n SuperchainERC20 is open to all the builders and Superchain innovators worldwide. They can now deploy SuperchainERC20-compatible tokens and be prepared for the Superchain Interop to happen. This upgrade implementation is recommended for all the new & existing tokens in the Superchain ecosystem to be interoperable automatically. Once the Superchain Interop will go live, it will add the below additional features for SuperchainERC20: Your Superchain project, like Superchain rollups, can achieve all these capabilities by quickly implementing the SuperchainERC20 standard. <\/p>\n\n\n\n After Superchain\u2019s successful projection of \u2018One Superchain, Many Chains\u2019, now Optimism is offering a whole new concept of native interoperability with \u2018One Superchain, One Token\u2019 approach enabled through the SuperchainERC20 standard. Each project in the Superchain ecosystem\u2013 be it OP Stack Layer2, Layer3, or Optimism dApps, can now implement SuperchainERC20 standard for their token and […]<\/p>\n","protected":false},"author":5,"featured_media":78125,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[329,326],"tags":[495,365,480,391,348],"acf":[],"yoast_head":"\nA bit about Superchain Interoperability<\/strong><\/h2>\n\n\n\n
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<\/li>\n<\/ul>\n\n\n\nLet\u2019s dive into SuperchainERC20: The Standard for simplified rollups interoperability <\/strong><\/h2>\n\n\n\n
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What makes SuperchainERC20 different from other token standards?<\/h2>\n\n\n\n
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<\/li>\n<\/ul>\n\n\n\nNow, let\u2019s talk about the key features\/benefits of SuperchainERC20:
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3. Unified standard- <\/strong>By implementing ERC-7802 that offers a unified interface to support cross-chain mint & burn functionality for all the OP stack rollups<\/a>, dApps<\/a>, and Ethereum<\/a>.<\/p>\n\n\n\nHow SuperchainERC20 works to offer cross-chain asset transfer?<\/strong><\/h2>\n\n\n\n
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This process ensures that token supply remains consistent across chains and prevents duplication.
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Steps to implement SuperchainERC20 Standard<\/strong><\/h2>\n\n\n\n
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<\/p>\n\n\n\nUses cases & example of SuperchainERC20: <\/strong>
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<\/strong>Using SuperchainERC20 standard, platforms can facilitate cross-chain flash loans. You may know that flash loans require repaying loans in the same transaction and on the same chain. But with <\/strong>SuperchainERC20, you can take a loan on chain A, , swap assets on chain B, and repay on chain C in a simple atomic transaction with full flexibility & security.
<\/p>\n\n\n\nWhat\u2019s next for SuperchainERC20?<\/strong>
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Also, if you plan to build an OP Stack Layer2<\/a>, Zeeve RaaS<\/a> is ready to assist you. We offer everything, from end-to-end Superchain consulting to Layer2 development and infrastructure management, everything at a 60% lower cost. For more information about Zeeve RaaS, our 1-click OP Stack sandbox tool, or our comprehensive rollup offerings, connect with us<\/a>. You can send your queries via mail or set up a Zeeve RaaS demo<\/a> with our experts. <\/p>\n","protected":false},"excerpt":{"rendered":"