Crypto: Base Launches Cobalt to Automate Orders and Frame Tokenized Assets

The conditional order enters the protocol. Base activated Cobalt on September 30, its third major update to the mainnet. It introduces Validity Transactions and expands B20, the token standard launched in June to facilitate the issuance of assets with compliance rules.

The Layer 2 incubated by Coinbase thus targets two distinct uses: traders who want to precisely define the execution conditions of a transaction and issuers of stablecoins or tokenized assets subject to regulatory obligations.

Key Points

• Validity Transactions become eligible only when multiple pre-defined conditions are met.
• Submissions can remain private until their inclusion, reducing their exposure to arbitrage bots.
• B20 allows combining KYC or sanctions policies without duplicating their address lists.
• An optional function allows for administrative input of tokens and registers the operation on-chain.

Base Adds Transactions That Wait for the Right Moment

Validity Transactions allow signing and then submitting a transaction accompanied by conditions regarding the state of the network. Base currently supports criteria related to balance, storage, block number, or the index of Flashblocks.

A trader can, for example, prepare a swap that only becomes eligible if the price of a pool reaches a certain level before a specified block. The sequencer checks the conditions before any inclusion. If they are never met during the expected period, the transaction expires without being executed.

This mechanism is similar to a conditional order, but it reserves no space in a block and does not guarantee execution. An eligible transaction can still remain pending if its fees are insufficient or if the network does not include it in time.

Base also indicates that submissions remain private until their inclusion. This confidentiality limits their exposure in the public mempool and reduces the risk that a bot anticipates the order to frame the swap of a buy and a sell, a practice known as sandwich attack. However, it does not constitute absolute protection against all forms of reorganization or value extraction.

Validity conditions are sent separately from the signed transaction and do not appear in the operation ultimately recorded on-chain. Base's documentation nevertheless recommends not placing any secret information in the call data or the criteria used.

B20 Combines Compliance, Securities Operations, and Input

Cobalt also extends B20, the ERC-20 compatible standard introduced by the Beryl update on June 25. Its main novelty lies in the Composite Policies, which allow associating two to four allow or block lists with an AND or OR logic.

A fund can thus require that a recipient appears simultaneously on a KYC list and on a register of accredited investors. If their address disappears from either of the two sources, the transfer automatically fails. The system reuses existing policies without copying their members or maintaining off-chain synchronization.

Issuers can also program a change in the multiplier used to display balances. This function, aligned with the ERC-8056 standard, serves notably to reflect a stock split or the reinvestment of a dividend without altering gross balances or the economic value held.

Cobalt finally adds seizeWithMemo to B20 assets and stablecoins. When an issuer activates this option and configures the necessary permissions, an administrator can transfer the balance of a designated account to another address. The operation records the seizing issuer, the original address, the destination, the amount, and a 32-byte memo. This memo can serve as a reference but does not guarantee that a detailed justification is written clearly.

Integrations built with Beryl remain compatible. Base now plans to test native blocks of 200 milliseconds, smart accounts integrated into the protocol, and certain improvements to the EVM expected with Glamsterdam. These developments remain distinct from Cobalt, whose new functions are already active on the mainnet.

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