MocktailSwap is said to be the first ERC-1155 standard token to be listed on Binance Smart Chain.
MocktailSwap Finance, a new DeFi protocol based on digital market makers, has released a “semi-fungible token” on the Binance Smart Chain, demonstrating more decentralised finance creativity.
The semi-fungible token is built on Ethereum’s ERC-1155 specification, which allows a smart contract to manage an infinite number of tokens. ERC-1155 tokens may use the same address to function as ERC-20 or ERC-721 specifications at the same time.
ERC-1155 is a multi-token standard for “contracts that manage multiple token types,” according to a summary of the Ethereum Improvement Proposal, or EIP. Under the EIP proposal, the benefits of ERC-1155 are described as follows:
“New functionality is possible with this design such as transferring multiple token types at once, saving on transaction costs. Trading (escrow / atomic swaps) of multiple tokens can be built on top of this standard and it removes the need to “approve” individual token contracts separately. It is also easy to describe and mix multiple fungible or non-fungible token types in a single contract.”
The ERC-1155 token in the Mocktail cake is “fungible” until reclaimed. It becomes “non-fungible” at the point of salvation. When redeemed, the token loses its value and cannot be exchanged as a normal token. As a result, these non-fungible tokens can be exchanged on the burgeoning NFT exchange.
MocktailSwap, which debuted in February, is a forum for decentralised token swapping that provides users with greater liquidity and, in principle, better prices. The protocol is said to have low fees and yield farming capability.
Binance Smart Chain debuted in September 2020 and now has over 180 programmes, many of which are based on DeFi and NFTs. In 2021, these two business verticals have exploded, providing cryptocurrency investors with new growth prospects.
Nonetheless, Binance Smart Chain has been chastised for complaints that the ecosystem handpicks validators, posing a risk of centralisation. The BSC network is managed by only 11 validators, who oversee the regular collection of 21 participating validators.