Semi-fungible token project is launched on Binance Smart Chain

MocktailSwap Finance, an emerging DeFi protocol targeting automated market makers, has launched a so-called “semi-fungible token” on the Binance Smart Chain, providing further evidence of innovation in decentralized financing.

The semi-replaceable token is based on Ethereum’s ERC-1155 standard, which allows a smart contract to manage an unlimited number of tokens. ERC-1155 tokens can work simultaneously as ERC-20 or ERC-721 standards with the same address.

ERC-1155 is a multi-token standard for “contracts managing multiple types of tokens,” according to a summary of the Ethereum Improvement Proposal, or EIP. Under the EIP proposal, the benefits of ERC-1155 are described as follows:

“This design enables new functionality such as transferring multiple types of tokens at once, saving transaction costs. Trading (escrow / atomic swaps) of multiple tokens can be built on top of this standard and it eliminates the need to ‘approve’ individual token contracts separately. It’s also easy to describe and combine multiple replaceable or non-replaceable token types in one contract. “

In Mocktail’s cake, the ERC-1155 token is “expendable” until redeemed. At the time of redemption it becomes ‘non-replaceable’. When redeemed, the token has no value and cannot be traded as a regular token. As such, these non-replaceable tokens can be traded in the fast-growing NFT market.

Launched in February, MocktailSwap is a decentralized token swapping platform that offers users higher liquidity and, in theory, more favorable rates. The protocol claims to provide minimal allowances and provide farming opportunities for yields.

Binance Smart Chain launched in September 2020 and currently has more than 180 projects, many of which focus on DeFi and NFTs. These two vertical sectors exploded in 2021 and offer cryptocurrency investors new growth opportunities.

Nonetheless, Binance Smart Chain has been criticized for concerns that the ecosystem is manually selecting validators, leading to centralization risks. The BSC network is operated by only 11 validators who oversee the daily selection of 21 active validators.