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64 changes: 43 additions & 21 deletions .gitbook/developers-evm/multivm-token-standard.mdx
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---
description: Understanding token representation in Injective's multi-VM architecture
title: MultiVM Token Standard
description: Understanding token representation in Injective's multi-VM architecture
---

## What is MultiVM Token Standard (MTS)?

MTS (MultiVM Token Standard) ensures that every token on Injective—whether deployed using Cosmos modules or via the Ethereum Virtual Machine (EVM)—has one canonical balance and identity. This unified approach prevents fragmentation and eliminates the need for bridging or wrapping tokens, thereby enabling seamless interoperability and unified liquidity for decentralized finance (DeFi) and dApp interactions.
MTS (MultiVM Token Standard) ensures that every token on Injective -
whether deployed using Cosmos modules or via the Ethereum Virtual Machine (EVM) —
has one canonical balance and identity.
This unified approach prevents fragmentation and eliminates the need for bridging or wrapping tokens,
thereby enabling seamless interoperability and unified liquidity for decentralized finance (DeFi) and dApp interactions.

## Why is MTS Important?

Expand All @@ -27,46 +31,64 @@ The system comprises two main components:

<figure><img src="/img/multivm-token-single-token-representation-architecture.png" alt="" /><figcaption><p>Single Token Representation Architecture</p></figcaption></figure>

### **Creating an** MT&#x53;**-Compliant Token**
### Creating an** MTS-Compliant Token

1. [**Using Our Prebuilt Templates**](https://github.com/InjectiveLabs/solidity-contracts/tree/master/src):
* Start with the provided Solidity templates, such as `BankERC20.sol`, `MintBurnBankERC20.sol`, or `FixedSupplyBankERC20.sol`.
2. [**Deploying the Contract**](/developers-evm/smart-contracts/):
* Deploy your MTS token contract on the Injective EVM network.
* The contract automatically interacts with the Bank Precompile to update the canonical state.

### **Interoperability and Cross-Chain Integration**
### Interoperability and Cross-Chain Integration

#### **Native Interoperability**
#### Native Interoperability*

Injective’s EVM is integrated directly into the Cosmos-based chain.

* EVM smart contracts, when using MTS, perform operations that reflect immediately on native modules (such as the exchange, staking, and governance modules).
* [JSON-RPC endpoints](/developers-evm/network-information/) provided within the Injective binary are compatible with Ethereum, ensuring smooth developer integration.
* EVM smart contracts, when using MTS, perform operations that reflect immediately
on native modules (such as the exchange, staking, and governance modules).
* [JSON-RPC endpoints](/developers-evm/network-information/)
provided within the Injective binary are compatible with Ethereum,
ensuring smooth developer integration.

#### **Cross-Chain Operations**
#### Cross-Chain Operations

* **IBC Compatibility:** Existing native tokens (e.g., those created via a [Token Factory](/developers-native/injective/tokenfactory/) or pegged via Peggy) are accessible from the EVM once an MTS pairing is established.
* **Bridging Alternatives:** While many blockchains require separate bridge operations (lock, mint, unlock), MTS avoids these steps by natively synchronizing states.
* **IBC Compatibility:** Existing native tokens
(e.g., those created via a
[Token Factory](/developers-native/injective/tokenfactory/) or pegged via Peggy)
are accessible from the EVM once an MTS pairing is established.
* **Bridging Alternatives:** While many blockchains require separate bridge operations (lock, mint, unlock),
MTS avoids these steps by natively synchronizing states.

#### **Allowances & Extended ERC20 Functions**
#### Allowances & Extended ERC20 Functions

* MTS contracts maintain standard ERC20 functionalities such as allowances (approve/transferFrom).
* Note that while the allowance mechanism is maintained within the EVM contract for convenience, the ultimate balance is managed by the bank module, preserving integrity.
* MTS contracts maintain standard ERC20 functionalities such as allowances
(approve/transferFrom).
* Note that while the allowance mechanism is maintained within the EVM contract for convenience,
the ultimate balance is managed by the bank module, preserving integrity.

### **Performance, Gas, and Security Considerations**
### Performance, Gas, and Security Considerations

#### **Gas Costs and Efficiency**
#### Gas Costs and Efficiency

* Gas fees are paid in INJ. While MTS operations via the EVM introduce an abstraction layer that may slightly increase gas usage compared to native transactions, the overall cost remains lower than comparable operations on Ethereum.
* Gas fees are paid in INJ.
While MTS operations via the EVM introduce an abstraction layer that may slightly increase gas usage compared to native transactions,
the overall cost remains lower than comparable operations on Ethereum.
* The gas model is designed to reflect a balance between EVM-style opcode costs and native module interactions.

#### **Security**
#### Security

* The [bank module](/developers-native/core/), as the single source of truth, underpins MTS’s security by ensuring that token balances are consistent and verifiable.
* The use of [precompiles](/developers-evm/precompiles/) prevents common pitfalls like state desynchronization, ensuring that all operations—no matter where initiated—update the same canonical ledger.
* Advanced security guidelines and best practices for smart contract development are provided in our security section and external resources.
* The [bank module](/developers-native/core/), as the single source of truth,
underpins MTS’s security by ensuring that token balances are consistent and verifiable.
* The use of [precompiles](/developers-evm/precompiles/) prevents common pitfalls
like state desynchronization, ensuring that all operations -
no matter where initiated—update the same canonical ledger.
* Advanced security guidelines and best practices for smart contract development
are provided in our security section and external resources.

**ℹ️ Note:**

To prevent denom spam, deploying an ERC20 contract via the ERC20 module is a **payable operation** and requires a deployment fee of **1 INJ**. Make sure your ERC20 contract deployment transaction includes this amount, or the operation will be rejected.
To prevent denom spam, deploying an ERC20 contract via the ERC20 module
is a **payable operation** and requires a deployment fee of **1 INJ**.
Make sure your ERC20 contract deployment transaction includes this amount,
or the operation will be rejected.
147 changes: 147 additions & 0 deletions .gitbook/developers-evm/permissioned-multivm-token.mdx
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---
title: Permissioned MTS Tokens
description: Leverage Injective's permissions module in MultiVM Token Standard (MTS) tokens
---

## Injective's Permissions Module

The [`permissions` module](https://docs.injective.network/developers-native/injective/permissions)
is native to Injective, and allows custom management (e.g. roles) for Denoms.
This capability is extended to MultiVM Token Standard (MTS) tokens,
where you can implement those custom management rules within your EVM smart contract code.

## Why Uses Permissions on MTS Tokens?

If you are tokenizing real world assets (RWAs) using MTS on Injective,
and that underlying asset inherently requires permissions,
that is a great use case for tapping into Injective's `permissions` module.

The EVM smart contract of your MTS token simply needs to implement
an additional Solidity interface to leverage the power of the `permissions` module.

## Smart Contract Implementation

In your smart contract, import `IPermissionsHook` from `PermissionsHook.sol` and extend it.

```solidity
interface IPermissionsHook
```

This will involve implementing the `isTransferRestricted` function,
with the following signature:

```solidity
function isTransferRestricted(
address from,
address to,
Cosmos.Coin calldata amount
)
```

You may find the full file on Github:
[`PermissionsHook.sol`](https://github.com/InjectiveLabs/solidity-contracts/blob/master/src/PermissionsHook.sol)

### Smart Contract Example

Create a smart contract that extends `PermissionsHook`:

```solidity
import { Cosmos } from "../src/CosmosTypes.sol";
import { PermissionsHook } from "../src/PermissionsHook.sol";
contract RestrictedAddressTransferHook is PermissionsHook {
/*
...
*/
}
```

Add a custom implementation of the `isTransferRestricted` function.
For example, this function will allow all transfers,
exepct for ones involving a specific address:

```solidity
function isTransferRestricted(
address from,
address to,
Cosmos.Coin calldata amount
) external pure override returns (bool) {
address restrictedAddress = '0x...';
if (from == restrictedAddress || to == restrictedAddress) {
// this particular address is not allowed to transfer
return true;
}

// All other transfers are allowed
return false;
}
```

You may find a more detailed example of this on Github:
[`PermissionsHookExamples.sol`](https://github.com/InjectiveLabs/solidity-contracts/blob/master/examples/PermissionsHookExamples.sol)

## Registering Hook

In order to register the hook for the permissions,
you will need the following:

- Control of the same account that deployed the MTS token.
- The deployed address of the MTS token
- The deployed address of the Permissions Hook
- The address of the account which should have an *admin* role on the MTS token.

With the above, you can create
[a JSON file similar to this one](https://github.com/InjectiveLabs/stablecoin-evm/blob/fiattoken-inj/scripts/demo/namespace.json).

Then run `injectived` for the registration,
using the same account that deployed the MTS token.

```shell
injectived tx permissions create-namespace ...
```

<Info>
Note that the MTS token and the Permissions Hook can have the same address.
That is an architectrual decision that is up to you.
</Info>

### Registering Hook Example

Create a file named `register-hooks.json`, with the following content:

```jsonc
{
"denom": "erc20:0x...", // <-- EVM address of the MTS token
"evm_hook": "0x...", // <-- EVM address of the permissions hook
"role_permissions": [
{
"name": "EVERYONE",
"role_id": 0,
"permissions": 10
},
{
"name": "admin",
"role_id": 1,
"permissions": 2013265920
}
],
"actor_roles": [
{
"actor": "inj...", // <-- Injective address of the admin account
"roles": ["admin"]
}
]
}
```

Be sure to replace the value of the
`denom`, `evm_hook`, and `actor_roles[].actor` fields with the appropriate values.
Delete all comments as well, so that the file is valid JSON.

Then run the following command:

```shell
injectived tx permissions create-namespace register-hooks.json [flags]
```

For additional details on this step, refer to
[How to Launch Permissioned Assets](https://docs.injective.network/developers-native/injective/permissions/04_launch_permissioned_asset).
1 change: 1 addition & 0 deletions .gitbook/docs.json
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},
"developers-evm/evm-equivalence",
"developers-evm/multivm-token-standard",
"developers-evm/permissioned-multivm-token",
"developers-evm/wrapped-inj",
"developers-evm/precompiles",
"developers-evm/bank-precompile",
Expand Down