Markdown Memoirs

EIP-7528: Standardizing ETH Handling in EVM for Enhanced Interoperability

June 19, 2025
By Aditya Mishra
Ethereum EIP EVM ETH ERC-20 Web3 Blockchain

EIP-7528: Standardizing ETH Handling in EVM

In the ever-evolving Ethereum ecosystem, developers and protocols constantly seek ways to improve efficiency, standardization, and interoperability. A proposed standard, EIP-7528, addresses the unique treatment of ETH, the native currency of Ethereum, suggesting a standardized mechanism for handling it akin to ERC-20 tokens without requiring conversion to Wrapped Ether (WETH). Here, we’ll take a closer look at the motivations, technical considerations, and potential benefits of this proposal for both developers and users.

Understanding the Need for EIP-7528

At its core, EIP-7528 proposes a universal approach for handling ETH on the Ethereum Virtual Machine (EVM) as if it were an ERC-20 token. Typically, the Ethereum network treats ETH differently from ERC-20 tokens, primarily because it is not issued by a smart contract and doesn’t follow the ERC-20 protocol. As a result, integrating ETH into systems that assume ERC-20 compatibility often requires additional logic or the use of WETH, which wraps ETH into an ERC-20 compatible token.

EIP-7528 introduces a “pseudo address” that can stand in for ETH, allowing it to be treated as if it were an ERC-20 token without needing conversion. This pseudo address is designated as 0xeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee, representing ETH in smart contracts and applications in the same way an ERC-20 token would be represented.

Key Highlights of EIP-7528

  • Unified ETH Representation: ETH can be represented by the pseudo address 0xeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee, which allows developers to treat ETH transactions and ERC-20 transactions similarly, eliminating the need for special handling of ETH in certain contexts.
  • Consistency Across Applications: With a unified representation, smart contracts can interact with ETH and ERC-20 tokens interchangeably, making it easier for developers to write cross-compatible code and reducing the risk of errors due to disparate logic for ETH.
  • Gas Efficiency Improvements: Avoiding the need to convert ETH to WETH can help reduce gas costs, which is beneficial in scenarios where gas optimization is critical, such as high-frequency transactions or applications involving large volumes of transactions.
  • Applicability Beyond Ethereum: The standard is designed to be compatible with other EVM-based chains. For instance, on Binance Smart Chain (BSC), the native asset BNB could also use this same pseudo address, as could MATIC on Polygon, providing a consistent approach to native asset handling across EVM chains.

Motivation Behind EIP-7528

The driving motivation of EIP-7528 is to streamline the treatment of ETH and ERC-20 tokens in a way that is both gas-efficient and developer-friendly. With the current infrastructure, ETH requires special handling due to its unique status as a non-ERC-20 token. WETH partially addresses this by “wrapping” ETH in an ERC-20 compliant token, allowing it to interact with protocols designed to handle ERC-20 tokens. However, WETH still involves additional gas fees and steps, leading to inefficiencies.

By introducing a pseudo address for ETH, EIP-7528 allows developers to treat ETH as a fungible, ERC-20-like asset without converting it. This pseudo address simplifies code and reduces the risk of fragmented data when recording transactions, as developers can log events for both ETH and ERC-20 tokens in a consistent format.

Application Examples

  • Event Logging: Use 0xeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee in events for ETH-related transactions.
  • Asset Identification: Enables standardized handling in protocols such as ERC-4626-based liquid staking tokens (LSTs).
  • Cross-Chain Interoperability: Brings consistency in native asset handling across EVM-compatible chains like BSC and Polygon.

ERC-4626 and Liquid Staking Tokens (LSTs)

One particularly promising application of this proposal is within the context of ERC-4626, a standard defining the interface for tokenized financial vaults. Liquid staking tokens (LSTs), which allow users to stake assets while retaining liquidity, are a natural fit for this ERC standard.

  • Standardized Interfaces: Enables seamless operations like deposit and withdraw using ETH directly.
  • Increased Liquidity and Accessibility: No WETH wrapping needed — better UX for staking ETH.
  • Protocol Interoperability: Enhances interaction between protocols using ERC-4626 vaults.

Security Considerations

Using ETH directly introduces potential re-entrancy vulnerabilities. Developers should follow the Checks-Effects-Interactions pattern:

  • Checks: Validate conditions before proceeding.
  • Effects: Update the contract’s internal state.
  • Interactions: Call external contracts last.

Considered Alternatives for the Pseudo Address

Alternatives like 0x0, 0x1, and 0xe were considered but rejected due to collision risks with Ethereum precompiled contracts and lack of clarity. The chosen address 0xeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee is recognizable and avoids these issues.

Benefits for Off-Chain Data Processing

EIP-7528 simplifies data processing by unifying ETH and ERC-20 logic. This allows for better indexing, transaction analysis, and consistency in analytics tools and dashboards, benefiting developers and data providers alike.

Implications for Interoperability and Ecosystem Growth

Standardizing native assets like ETH across EVM-compatible chains promotes broader adoption, easier integration, and improved developer experience. It could also encourage other chains to adopt similar standards.

Conclusion: A Step Toward Simplified, Unified Asset Handling

EIP-7528 represents a forward-thinking approach to treating native assets on EVM chains as fungible tokens within a standardized framework. By addressing the current limitations in handling ETH and other native assets, this proposal aims to create a seamless experience for developers and users, reducing complexity, optimizing gas costs, and enhancing security.

If widely adopted, EIP-7528 could contribute to the growth and evolution of the Ethereum ecosystem by offering an innovative, consistent approach to asset management.