ERC95: A New Standard

CORE Vault
Published in
3 min readOct 12, 2020

Growing CORE’s Ecosystem by Innovation

The Power of Diversification 🌐

The CORE ecosystem gives its LP token holders the ability to generate rewards from a combination of factors such as liquidity and volume. Carefully blending pairs with different characteristics, strengthens the diversification of CORE and adds new vectors to generating these rewards.
Introducing a second pair, linked to CORE, has an impact on fees generated.
Due to CORE being the common denominator between the two liquidity pools, holding CORE/wBTC LP tokens, ties you to BTC fluctuations against CORE and ETH. The provided liquidity by our pools invites arbitrage opportunities to take place which in return creates additional fees for the LP token holders. Arbitrage is the process of earning a “riskless” profit by taking advantage of different prices for the same good. CORE creates a welcoming environment by locking liquidity and then charging 1% to use it. This balance creates opportunity for traders and rewards its LP token holders.

ERC-95 on-chain Risk Evaluation and More 📠

CORE’s vision of Vaults surpassed the capabilities of the ERC-20 standard. To create a premium product, new ways of collecting and processing data was needed.

Currently, token data about liquidity and volume is calculated off chain. This process is inefficient and not useful to our smart contracts and Vaults. The goal is to establish an environment rich in information which can be used to react to different market changes. The first step was achieved by creating side effects to CORE. Locking liquidity from LP tokens and charging token transfers a 1 % fee, creates a new set of data about volume. This volume is precise, on chain and expensive to fake. Increasing the ability to assess risk.

Analysing the ERC-20 standard, revealed its deficiency to collect information. We needed coins to become smarter, so we made them smarter by linking them to our new ERC-95 standard proposal.

The newly developed ERC-95 standard proposal allows wrapped tokens to keep track of volume adjusted pricing, on chain. By wrapping tokens we force arbitrage going to CORE from all LGE-pairs because the price of wBTC=c(wBTC) by the same process ETH=wETH. Due to all transactions going through our wrapped token, it will act as an oracle, reporting its real statistics. This information gives us the ability to calculate risk. And the ability to calculate risk will profoundly influence Vaults and its strategies. ERC95 can also be used for percentage based wraps, for example: 25%wBTC, 25%ETH, 25% CORE, 25% other Coin … into one token which holds 0.25 of the other tokens. Because this is working with 100 percent points, you can essentially add 100 tokens with 1% each. Keep in mind that the first example counts as a new token which creates limitless possibilities.

Additional Information about LGE’s 💾

During the CORE/wBTC Liquidity Generation Event, participants have the opportunity to benefit from a unique price. The price of LP tokens does not scale during the liquidity event, it is even for all contributors. After the event, minting new LP tokens becomes increasingly expensive.

💬 Join Us!