Are users able can transfer custom ERC20 without whitelisting? Or mint ERC20 on IMX?
Cross posted from Discord
ERC20’s still need to be registered with IMX.
You will need to mint on L1 and transfer to L2, followed by a whitelist process.
‘IMX doesn’t support minting ERC20s on L2, with good reason, minting on L1 provides on-chain visibility into token supply and is a one-time gas expenditure. The tokens can then subsequently be deposited into the L2 and used for transferring and burning. This method has the advantage of both on-chain transparency into token supply and benefits of the gas-free L2. Note that burns on L2 won’t be deducted from the token supply on L2. Mints, transfers and burns can be done without a liquidity requirement on L1.’
The whitelisting process involves reviewing your ERC20 on a case-by-case basis.
If someone is building on Immutable and requires an ERC20 for their project how can they know they’ll be approved ahead of time. IE. Creating a community coin that is distributed the longer a wallet holds an ERC721 token. I hope I’m saying that all right haha.
There are some oldish guidelines for this in the form of:
ERC20 tokens need to be whitelisted by internal teams before they can be used on L2. Any trade in an ERC20 token has a 2% protocol fee, that protocol fee needs to be swapped into ETH or IMX for distribution to IMX stakers. As such, there needs to be sufficient liquidity to prevent price slippage upon swap on L1. Current guidance is that the USD liquidity on Uniswap or Sushiswap needs to equal to the average USD traded per month. If the customer can’t satisfy that then we should ask the merit of using a crypto token vs. a digital token.