ERC-4626

ERC-4626

ERC-4626 is the Ethereum token standard for tokenized vaults. It defines a common interface for how a vault accepts deposits of an underlying asset, issues share tokens representing a claim on the vault, and handles redemptions, so that any wallet, protocol, or dashboard can interact with any compliant vault the same way.

Before ERC-4626, every yield vault implemented its own deposit and withdrawal logic, which meant integrators had to write custom code for each one. The standard fixed this by specifying the core functions (deposit, mint, withdraw, redeem) and the share-price accounting (how many shares a deposit mints, how many assets a redemption returns) that every vault should expose. The result is composability: a vault that follows the standard slots into the broader DeFi ecosystem automatically.

ERC-4626 assumes synchronous settlement, deposits and redemptions complete instantly at a computable share price, which works for vaults holding liquid, continuously priced assets. It's the foundation most DeFi vaults build on, and the reference point against which asynchronous extensions like ERC-7540 (built for illiquid, real-world assets that can't settle instantly) are defined.

Related: What is a vault in DeFi and Async deposits and ERC-7540.