MocktailSwap Finance, an up-and-coming DeFi protocol focused on automated market makers, has launched a so-called “semi-fungible token” on the Binance Smart Chain, offering further evidence of innovation in decentralized finance.
The semi-fungible token is based on Ethereum’s ERC-1155 standard, which enables a smart contract to govern an unlimited number of tokens. ERC-1155 tokens can operate as either ERC-20 or ERC-721 standards at the same time using the same address.
ERC-1155 is a multi-token standard for “contracts that manage multiple token types,” according to a summary of the Ethereum Improvement Proposal, or EIP. Under the EIP proposal, the benefits of ERC-1155 are described as follows:
“New functionality is possible with this design such as transferring multiple token types at once, saving on transaction costs. Trading (escrow / atomic swaps) of multiple tokens can be built on top of this standard and it removes the need to “approve” individual token contracts separately. It is also easy to describe and mix multiple fungible or