Current Uses in Blockchain
Explore how ERC-20, ERC-721, and ERC-1155 standards are applied in the Avalanche ecosystem.
In the previous section, we covered the main token standards used on Avalanche: ERC-20, ERC-721, and ERC-1155. Now, let’s explore how these standards are applied today in the Avalanche ecosystem across the C-Chain Mainnet, Fuji (Testnet), and custom L1s.
ERC-20: Fungible Token Use Cases
On Avalanche C-Chain Mainnet
- Stablecoins:
USDT: Widely used for DeFi protocols, payments, and trading pairs.
USDC: Popular for lending, liquidity provision, and cross-chain settlements. - Native Avalanche Tokens:
WAVAX: Wrapped AVAX used for liquidity pools, lending markets, and DEX operations. - Governance Tokens:
JOE: Token powering governance and incentives in Trader Joe.
QI: Governance token for Benqi lending and liquid staking platform.
On L1 Deployments
- Custom Ecosystem Tokens: L1 projects can issue ERC-20 tokens for payments, in-game economies, or DeFi services, with full control over tokenomics.
On Avalanche C-Chain Fuji (Testnet)
- Developers test token logic, minting, and burning before deploying to C-Chain or an L1, avoiding the cost of mainnet errors.
ERC-721: Non-Fungible Token Use Cases
On Avalanche C-Chain Mainnet
- NFT Marketplaces:
Kalao: Marketplace for art, gaming, and utility NFTs.
NFTrade: Cross-chain NFT marketplace supporting Avalanche. - In-Game Unique Assets:
Gaming NFTs: Rare weapons, characters, and skins in Avalanche C-Chain-native games.
On L1 Deployments
- Project-Specific Collections: L1s can issue NFTs for branding, game achievements, or membership systems, keeping transactions isolated from C-Chain congestion.
- Sports & Entertainment: FIFA+ Collect: Official FIFA digital collectibles platform on L1 Avalanche, featuring historic moments, iconic goals, and tournament highlights.
On Avalanche C-Chain Fuji (Testnet)
- Used to test metadata integration, marketplace listings, and batch minting.
ERC-1155: Multi-Token Standard Use Cases
On Avalanche C-Chain Mainnet
- Gaming Projects:
Crabada: Combines fungible resources (minerals, tokens) with unique NFT characters in one contract. - Collectible Platforms:
Multi-series collections: Managed without deploying new contracts for each.
On L1 Deployments
- Metaverse Economies: L1s can host both in-game currencies and unique items in one ERC-1155 contract, benefiting from low latency and high scalability.
On Avalanche C-Chain Fuji (Testnet)
- Testing batch transfers, multi-asset minting, and marketplace integrations before L1 or C-Chain Mainnet launch.
Observations from Avalanche’s Current Uses
- Low Fees Enable Microtransactions: The cost-efficiency of Avalanche makes even small-value ERC-20 and ERC-1155 transfers practical.
- L1s Enable Asset Isolation: Projects with heavy transaction loads can launch their own L1 to keep asset operations unaffected by C-Chain activity.
- Fuji Testnet is a Critical Step: Almost every major Avalanche project tests token standards on Fuji before going live.
- Bridging Expands Liquidity: Avalanche supports assets from other EVM networks, extending utility and user reach.
In the next section, we will analyze the limits companies face when using these standards, focusing on challenges like privacy, compliance, and scalability and set the stage for introducing privacy-focused solutions like eERC.
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