The ERC-7621 is a new token standard that introduces a range of powerful functionalities designed to revolutionise the way we manage funds. It provides functionality for flexible portfolio construction, simplified portfolio management, and the ability to convert holdings into liquid assets more readily.
Decentralized Management
By enabling fully decentralized management of baskets, where managers have complete discretion, the ERC-7621 effectively addresses the scalability challenge. ERC-7621 provides alternative technical approaches to traditional fund structures - all while staying true to decentralized principles. Utilizing the Ethereum blockchain, the ERC-7621 Token Standard aims to bridge the gap between the flexibility of blockchain technology and the needs of traditional investment vehicles. A pivotal component of this effort is the ERC-7621 LP token, which represents an investor’s share in a BSKT portfolio. These tokens are transferable and tradable across exchanges, akin to shares of traditional Exchange-Traded Funds (ETFs), and are intended to enhance liquidity and provide arbitrage opportunities within the investment landscape.
