Introducing Evmos’ ERC-20 Module
Introducing Evmos’ ERC-20 module
In our previous release of the EVM module, we made it possible to deploy smart contracts on Cosmos chains and create new ERC-20 tokens on Evmos. However, there was no way to use these tokens in the Cosmos ecosystem.
Now you can with the ERC-20 module!
The recent Evmos v0.4 upgrade includes support for the ERC-20 module (aka x/erc20). The module allows users to instantly convert ERC-20 tokens into native Cosmos Coins and vice versa. This will allow users to exchange assets interchangeably in two entirely different layers, the EVM and Cosmos.
Bridging ERC-20 applications to the Cosmos Ecosystem
If you missed this year’s Cøsmoverse in Lisbon, you might want to take a seat. Liquid staking, Interchain Composability, Ethereum-on-Cosmos… The Cosmos ecosystem is growing and, with it, interest from established DeFi protocols on the EVM, looking to take part in the Cosmos universe.
Why is this important?
Our ERC-20 module allows DeFi protocols to seamlessly integrate with Evmos and the Cosmos ecosystem. Using the x/erc20 module, developers can build smart contracts on Evmos and use the generated tokens for other applications in the Cosmos ecosystem, such as earning $OSMO staking rewards or taking part in governance proposals by voting with $ATOM. Validators can even define their minimum fees in ERC-20 tokens in the application configuration to allow users to pay tx fees with stablecoins and other ERC-20s deployed on Evmos.
How does this work?
The ERC-20 module registers mappings between an ERC-20 token contract address and a Cosmos Coin denomination, aka Token Pairs. Token Pairs enable users to convert ERC-20 tokens into their native Cosmos Coin representation. Under the hood the module translates the ERC-20 token address and its metadata into a Cosmos Coin denomination and its corresponding Cosmos Coin metadata.
Users create new ERC-20 Token Pairs via a governance proposal. If the governance proposal passes, the referenced Token Pair is added to the x/erc20 module. As long as the Token Pair is enabled within the module, anyone can convert their ERC-20 tokens into its Cosmos Coin representation. In this representation, users gain access to the Cosmos ecosystem. For example, users can deploy an ERC-20 $USDC Token on Evmos and create a Token Pair that lets anyone convert their $USDC on Evmos into the Coin representation. They can also transfer these ERC-20 tokens to other Cosmos chains via IBC, trade them using the Keplr Wallet or even use them to pay tx fees if there are validators who support the ERC-20 tokens in their configurations.
Users will soon be able to convert tokens that do not natively live on Cosmos. With Evmos’s upcoming EVM bridge deployments, users will be able to transfer their existing ER-C20s on Ethereum, L2s, and other EVM-based chains to Evmos and subsequently use the x/erc20 module to convert them into native Cosmos Coins. This opens up the world of application-specific blockchains to the entire Ethereum community in a unique way. Once these tokens land on Evmos, users can either use them to fuel missions in a familiar EVM environment or onboard themself to the Cosmos ecosystem, using the x/erc20 module.
Use Cosmos Coins as ERC-20 Tokens on Evmos
While the x/erc20 module allows users to bring ERC-20 assets into the Cosmos ecosystem, the module also allows the use of Cosmos-based assets in the Evmos DeFi ecosystem. Similar to registering an ERC-20 token, anyone can register a native Cosmos Coin and propose a new Token Pair via governance. If the corresponding Token Pair is enabled, anyone can convert their ATOM or any other native Cosmos Coin into its ERC-20 token representation.
With this functionality users can convert ATOM into tokens and use them to buy NFTs, liquid stake their OSMO, use the staking voucher as an ERC-20 token on a DeFi protocol, or build entirely new applications that experiment with Interchain composability of application-specific blockchains.
How to get started
We are barreling towards Mainnet at lightning speed with around 34,000 blocks per day and it’s not too late to onboard early. The Evmos Incentivized Testnet is live and participants are working hard to complete the Mars Meteor Missions. With over 300 active validators on our Olympus Mons Mission, the instruments on our Starship are running hot and are being pushed to their limits.
Use the x/erc20 module today and start earning rewards! The community is already test-driving novel applications on the journey to the Evmos Mainnet. Join us on Discord to interact with us and our community and find out what the Evmosians are building.
If you’d like to have a technical understanding of the ERC-20 module, check out the module specification. If you just want to get started quickly, use the Evmos.me wallet (HackAtom winner) to submit your proposal and let the community know in the #governance channel on Discord. Note that before you propose a new Token Pair, we highly encourage the community to do proper due diligence of the proposed ERC-20 contract and ensure that it’s a trusted contract.
The team at Tharsis is excited to see this feature roll out; we can’t wait to see what ERC-20 you are going to use on other chains!
The Cosmonauts at Tharsis🌋
Evmos is an application-agnostic chain that will be interoperable with the Ethereum mainnet, EVM-compatible environments, and other BFT chains via IBC, making it easy for users and developers to interact seamlessly between chains.
Evmos aims to be the EVM Hub of Cosmos, making it easy for smart contracts to deploy and communicate within the Cosmos ecosystem.
💻 Developer Documentation: https://evmos.dev/
👾 Discord: https://discord.gg/evmos
🐙 GitHub: https://github.com/tharsis/evmos
🕊 Twitter: https://twitter.com/EvmosOrg
📯 Telegram: @EvmosOrg
📄 Medium: https://evmos.blog/
🖥 Website: https://evmos.org
🌋 Jobs: https://thars.is