Omnichain Fungible Token
The Omnichain Fungible Token (OFT) Standard allows fungible tokens to be transferred across multiple blockchains without asset wrapping, middlechains, or liquidity pools.
This standard works by burning tokens on the source chain whenever an omnichain transfer is initiated, sending a message via the protocol and delivering a function call to the destination contract to mint the same number of tokens burned, creating a unified supply across both networks.
Using this design pattern, LayerZero can extend any fungible token to interoperate with other chains using the protocol. The most widely used of these standards is OFTV2.sol, an extension of the LZApp Contract Standard and the ERC20 Token Standard.
To determine which version of OFT you should use in your deployment, fully read the guide on V1 OFT vs V2 OFT. This will cover every version of OFT currently available for your deployment.