ApeSwap and Paladin Collaborate to Develop EIP-5725: Transferable Vesting NFTs

New Standard for NFTs

ApeSwap and Paladin have collaborated to develop a new standard for Non-Fungible Tokens (NFTs) called EIP-5725: Transferable Vesting NFTs.

This standard provides an interface for transferable vesting NFTs that release underlying tokens over time. ApeSwap is a decentralized exchange and bonding protocol, while Paladin is a blockchain security provider.

An Ethereum Improvement Proposal, or EIP, is a document used to recommend and describe standards for the Ethereum community. There are multiple types of EIPs, but EIP-5725 is a ERC (Ethereum Requests for Comments) proposal, meaning that it affects application-level standards and specifications," The ApeSwap team revealed in a recent blog post.

This proposal creates a standard API for NFT-based contracts that enables two primary functionalities: transferability and vesting.

The EIP-5725 allows projects to represent unvested tokens using NFTs held by token holders. Projects can create their own NFT marketplace, or integrate with an existing marketplace, to create a secondary market for vesting tokens. Projects can hold and represent the vested and locked properties of any underlying token, whether ERC-20 or otherwise, that is emitted to the NFT holder.

EIP-5725 also provides basic functionality for creating vesting NFTs, claiming tokens, and reading vesting curve properties.

Creation of EIP-5725

ApeGuru and Apetastic, core contributors to ApeSwap, created EIP-5725 when they realized that no standard existed for developing vesting contracts for ApeSwap's business development partners. They collaborated with Paladin to review the contracts and ensure the highest level of security and usability for future projects.

ApeSwap used the EIP-5725 standard to create the first ApeSwap Bonds, previously known as BANANA Bills. They used discounted vesting tokens to raise protocol-owned liquidity in exchange for user LP tokens.

EIP-5725 allows projects to create value for users and projects using transferability of vesting tokens, custom NFT art capabilities, novel vesting curves, and aggregated, holistic views of vesting tokens and properties.

Transferability of Vesting Tokens

With EIP-5725, vesting tokens are emitted to the holder of a transferable NFT, which means that users can buy or sell the NFTs representing unvested tokens. This secondary market provides more flexibility around the underlying asset, enabling users to liquidate or trade at any time.

Custom NFT Art Capabilities

EIP-5725 allows projects to create custom NFT art based on a variety of underlying inputs. Projects can include a limited edition seal or color scheme on NFTs of particular significance or value. This can become one of the considerations when valuing the NFT on a secondary market.

The EIP-5725 API enables projects to create holistic dashboards and reporting tools that aggregate the status of their vesting NFTs across entire chains. This can help the project make more informed strategic decisions about future releases and marketing efforts.

Use of EIP-5725 in Projects

ApeSwap has used the EIP-5725 standard to create a category of products called ApeSwap Bonds (formerly known as Treasury Bills). Crypto projects can create transferable NFTs that users purchase with liquidity

What Is ApeSwap:

ApeSwap is a leading DEX on BNB Chain, which offers users high-quality trading experiences. ApeSwap is a blend of a decentralized exchange, yield farming, staking, and an automated market maker (AMM). ApeSwap users can partake in its liquidity pool offerings via yield farming to earn its native BANANA token. These earned tokens can be used to stake and earn other tokens and unlock deluxe features. 

For more information about ApeSwap, visit the platform's media links: 

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