A new EIP aims to revamp the tokenized vaults standard for RWAs

If EIP-7540 passes, protocols that have asynchronous workflows can benefit from yield-bearing vaults

article-image

Sergey Nivens/Shutterstock modified by Blockworks

share

A new Ethereum Improvement Proposal, or EIP, aims to introduce asynchronous deposit and redemption flows as an extension to the existing ERC-4626 tokenized vault standard.

ERC-4626 itself is a standard designed to introduce parameters for yield-bearing vaults. These vaults are smart contract platforms that execute strategies, providing rewards for the token depositor.

The standard, though, is designed to ensure that the vaults are atomic, meaning that swaps have a deposit and redemption limit. Another way to explain atomic vaults would be “all or nothing” — If X happens, Y must happen at the same time. 

Read more: Tokenized vaults see steady deployments after ERC-4626 adoption

In an interview with Blockworks, Asad Khan, a DeFi politician at Centrifuge, explains that with atomic transactions, a user who deposits something to lend immediately receives a token that represents what they share.

EIP-7540, in this instance, would ensure that asynchronous deposits and redemption flows are possible. 

This EIP has the potential to benefit protocols that deal with real-world assets (RWAs), cross-chain lending and liquid staking, according to Khan.

“The asynchronous request is you deposit a token, and you may not get the token back until the request is complete later on, this can be based on a number of parameters,” Khan said.

An example of an asynchronous request would be, if X happens, Y can only happen under the conditions that Z is met. 

In this case, X could be a lender who deposits collateral into a pool, Y would be the share that the lender receives only after Z, a borrower, actually borrows money from the pool.

As it currently stands, Khan explains, every RWA protocol has to deal with its own unique off-chain processes. The purpose of EIP- 7540, would be to standardize how protocols can handle these on and off-chain transactions. 

Asynchronous transactions could potentially lead to greater security risks, however. ERC-4626 vaults have been designed to be atomic to prevent one party from controlling multiple assets at the same time. 

Jeroen Offerijns, Centrifuge’s chief technology officer and co-author of EIP-7540, told Blockworks that asynchronous deposit and redeem flows are inherently more complex than atomic flows when it comes to implementation because of the additional state transitions that are required. 

“More attention should be to extensive testing of the flows, and auditing of any asynchronous vault implementation,” Offerijns said. “Standardizing can help by creating reusable property test suites, similar to what has been developed for ERC-4626.”

Read more: Tokenized Vault Standard on Ethereum Set to ‘Kick Off New DeFi Summer’

Offerijns noted that asynchronous flows will add pressure to protocols that must ensure an execution of a request operates fairly. Offerijns added that Cenfrigue has built an epoch mechanism that can bundle orders and even the playing field for requests and protect against frontrunning. 

EIP-7540 is still in its early stages. The proposal must first be discussed on the Ethereum Magicians forums before moving onto next stages. 

“Once consensus has been reached, the proposal will move to review, last call and in the end a final stage, at which point it is accepted,” Offerijns said.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

tg trading bot report graphic.png

Research

Telegram trading bots have found their primary niche in highly speculative token launches and retail-dominated memecoin markets, with many features specifically tailored to token sniping and copy-trading strategies.

article-image

Upshift is being spun out of August, which raised $10 million earlier this month

article-image

DeFi can make markets “faster” and “more transparent,” said the CEO — but what does that mean for the dollar?

article-image

As the markets end a rocky Q1, investors wait for tariff announcements and Trump’s “Liberation Day”

article-image

Off The Grid’s Web3 lead shares details on the game’s economy and how the token will be integrated

article-image

Credora and others are setting new standards for transparent, user-facing risk in DeFi

article-image

How Brian Armstrong’s vision for a “PayPal for Bitcoin” evolved into Coinbase, one of the most influential companies in crypto