It can be said that in the past six months, the crypto market has been in a state of turmoil to some extent. From the Luna farce as the starting point to FTX, which has still had everyone's attention until now, has been followed by disastrous incidents of large institutions. In this series of collapses, some acute problems hidden in the crypto market have been exposed, the most prominent of which is the security of user assets.

Although theoretically, crypto has always taken decentralization as its core concept, in fact, in the long-term development process, the crypto market cannot fully avoid the undermining of centralization forces. The emergence of many leading institutions could be the most effective evidence. And this also puts ordinary users and giant institutions in an unequal position here, to some extent even resembling the traditional Web2 world. But there is no doubt that this phenomenon should not become the norm in the crypto world. Therefore, to cope with this problem, many builders have also constantly made their own contributions.

Recently, the Ethereum Foundation passed a new ERC proposal, numbered ERC-5528. It is a redeemable custodian agreement involving the security of assets on the chain.

In the eyes of the founder of ERC-5528, the problems in the crypto world are way more complicated than what ordinary users see, and users' assets are almost pervasively violated. This includes not only a great load of hackers but also many projects with vicious motives. Some projects maliciously control data through big funds to attract users to participate, to maliciously smash the price or even directly conduct a rug pull to capture users' assets reasonably, and ERC-5528 was born for this purpose.

In the EEC5528 model, the project can choose to stake a part of the funds in advance in the contract, and once the price plunges sharply or other abnormalities occur within a period after the token issued, the user can redeem his or his assets via ERC-5528. The entire process will be done on the chain and is completely controlled by smart contracts, so it can maximize the transparency and effectiveness of the process.

In this way, it is equivalent to adding a new layer of security to users in the form of smart contracts. At the same time, projects that adopt ERC-5528 will not only be restricted. In a sense, the project that dares to make a redeemable promise will doubtlessly have a better credit endorsement in the eyes of users because of a certain degree of rights and interests transfer. For the overall crypto environment, the market atmosphere governed by smart contracts is much more reasonable.

In a sense, the arrival of ERC-5528 is similar to the high gas fee of Ethereum itself. They both provide basic protection for the overall ecosystem by raising the threshold. The great success of Ethereum has also proved to a certain extent that the raised threshold may not necessarily hinder the overall growth of its ecosystem, but may play a certain protective role, further increasing the cost of doing evil, which is crucial for the sustainable development of the entire Ethereum ecosystem.

Although ERC-5528 is still in its infancy and has not been widely adopted, in my opinion, its existence is indeed reasonable and indispensable. Therefore, I believe that the future application and development of ERC-5528 can be something to look forward to. Of course, it is quite difficult for the overall environment of the crypto market to rely solely on smart contracts. Even though the contract is the king, we all should also grow our understanding and cognition down the road.