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Enhance Token Standards with ERC-20 Compatibility Layer and ERC-1155 LP Tokens #7942

@DavidBraide

Description

@DavidBraide

Issue Description
Summary
‎This issue proposes optimizations to Uniswap’s token standards to improve interoperability and LP experience: 
‎1. ERC-20 Compatibility Layer: A wrapper contract to handle non-standard ERC-20 tokens, reducing swap failures. 
‎2. ERC-1155 LP Tokens: Introduce a hybrid ERC-1155 token for LP positions to enhance composability and liquidity. 
‎3. Gas Optimization: Streamline ERC-721 position management with batch adjustments or a “lite” mode. 
Further Reference:
https://github.com/DavidBraide/uniswap-token-standards-optimizations/tree/main
Motivation
‎- Non-standard ERC-20 tokens cause swap errors, impacting user trust. 
‎- ERC-721 LP tokens limit composability compared to V2’s fungible tokens. 
‎- High gas costs for managing LP positions deter retail participation. 

Proposed Solution
‎- ERC-20 Compatibility: Build a wrapper contract to normalize non-standard ERC-20 behaviors (e.g., handle fee-on-transfer tokens, missing return values). 
‎- ERC-1155 LP Tokens: Implement an optional ERC-1155 standard for LP positions, allowing fractionalization and trading on secondary markets. 
‎- Gas Optimization: Add batch processing for range adjustments or a static “lite” mode via V4 hooks. 
‎- Test on Sepolia testnet and propose via Uniswap governance forum. 

Steps to Implement
‎1. Design and test an ERC-20 wrapper contract in Solidity. 
‎2. Prototype ERC-1155 LP token integration, ensuring backward compatibility with V3. 
‎3. Simulate gas savings for batch adjustments using historical data. 
‎4. Draft a governance proposal for community feedback. 

Labels: enhancement, good first issue, token standards, protocol optimization 
Assignees: Open for contributors 
Milestone: Uniswap V3/V4 enhancement 

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