Base Cobalt Goes Live With Conditional Trades and New B20 Controls for Tokenized Assets

Key Takeaways:

• The newest Cobalt upgrade by Base has been activated on the mainnet.
• Traders can send orders which will only be filled when certain criteria are fulfilled.
• B20 new compliance tools, corporate-action and asset-control tools.

User Score

8.7

Base has launched its third major network upgrade, Cobalt, which provides increased control over transaction execution, as well as additional growth opportunities for the B20 token standard in onchain asset issuance.

The upgrade addresses two aspects: the new advanced trade functionality via validity transactions, and enhanced support for Foundation’s tokenized finance assets.

Cobalt introduces Validity Transactions, allowing users to sign and submit a transaction before its execution conditions are satisfied. Instead of repeatedly monitoring the market and resubmitting orders, a trader can specify conditions such as an asset price threshold and a block-number deadline.

Base then checks what their requirements are as new blocks come in. The transaction is eligible for inclusion once all of the conditions have been met.

A trader, for instance, can place a swap that only takes place when a token sees 4,000 USDC before a particular block. In the case of the price condition not being met before the deadline, no transaction will be added. Users must still select the transaction and define both the conditions and the transaction. They do not trade on Base.

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Validity Transactions can also be kept private until they get to the onchain. This enables the sophisticated traders to have more control on when they want to expose their orders and will lessen the need for continuously polling blockchain state.

It will now be provided via Base’s new Transaction API and will be suitable for strategies that rely on particular timings or onchain conditions.

Cobalt also launches B20, a native token standard for stablecoins, tokenized real-world assets and fungible assets. One new feature, Composite Policies, enables issuers to create AND and OR combinations based on various compliance rules.

For instance, a tokenized fund may need a recipient to complete KYC and accreditation requirements and may use separate providers to perform sanctions screening.

Also new on Cobalt are scheduled multiplier changes. Issuers can program changes used for corporate actions such as stock splits without minting or burning tokens or changing the underlying raw balance.

An additional feature is seizeWithMemo, which allows for transferring balances with seizure functionality since it is enabled for a token. Can be an onchain note that explains what action is being taken as part of the transfer.

This does not cause a Base to move into itself. Whether the function is enabled and who can use it will be determined by the issuer.

Cobalt is within a longer technological path regarding trading, financing, and payments through tokens. Base will target even shorter block times (200 milliseconds) and reassert its current guarantees on organization.

The network will also be supporting protocol-level smart accounts and gas sponsorship and transaction batching, among other EVM enhancements.

For asset issuers, traders and developers, the Cobalt is moving Base closer towards an infrastructure that supports programmable financial products instead of just token transfers.

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