According to DeepChao TechFlow news, Layer 2 interoperability protocol Connext recently launched the xERC20 (also known as ERC-7281) token standard, aiming to reduce the liquidity costs of token issuers and improve the security of bridging tokens. DeFi lending protocol Alchemix Finance has become the first project to adopt the standard.

xERC20 (ERC7281) provides a range of support for token issuers, including the ability to manage bridges, set minting limits, and more, enabling selected bridges to mint the same tokens. Connext stated that projects adopting the xERC20 standard will be fully compatible with the ERC-7281 specification that will be finalized in the future, enabling 1:1 token transfer between chains.