# Create an ERC20 token

***

This tutorial shows you how to deploy and interact with an ERC20 token on Validium Testnet.

This is what you're going to do:

Build an ERC20 token smart contract with additional custom logic

Deploy the smart contract to the Validium Testnet using Remix or Atlas.

### Prerequisites <a href="#prerequisites" id="prerequisites"></a>

1. Before you start, make sure that [you’ve configured the Validium Testnet in your wallet](/docs/connect-to-validium.md#add-validium-to-your-metamask-wallet).
2. Have at least 0.5 Validium Testnet VLDM. If you need more, use [one of the faucets](https://testnet.faucet.validium.network/).

### Custom ERC20 token code <a href="#custom-erc20-token-code" id="custom-erc20-token-code"></a>

ERC20 tokens are a standard for fungible tokens, which can be traded and represent a fixed value. You’ve used ERC20 tokens if you’ve transacted with USDC, DAI, USDT, LINK or UNI.

The ERC20 token we’re going to deploy will allow users to mint and burn tokens. The entire smart contract code is as follows:

```solidity
// SPDX-License-Identifier: Unlicensed
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
import "@openzeppelin/contracts/access/Ownable.sol";
import "@openzeppelin/contracts/token/ERC20/extensions/ERC20Burnable.sol";

contract TestToken is ERC20, Ownable, ERC20Burnable {
    constructor(string memory name, string memory symbol) ERC20(name, symbol) {
        _mint(msg.sender, 100 * 10 ** decimals());
    }

    function mint(address to, uint256 amount) public onlyOwner {
        _mint(to, amount);
    }
}
```

Validium is EVM compatible, so you can use existing popular libraries like OpenZeppelin.

The most important features are:

* `Ownable` : this extension sets the deployer account as owner of the smart contract. It also introduces the `onlyOwner` modifier that restricts the execution of certain functions to the owner of the contract.
* `ERC20Burnable`: this extension adds the `burn` and `burnFrom` functions to the smart contract. These functions destroy tokens from a given account.
* `constructor`: called on deployment, the constructor will assign the given name and symbol to the token and mint 100 units of it to the account that deployed the contract.
* `mint` : this function creates new token units to a given account. It uses the `onlyOwner` modifier so it can only be called from the owner account.

### Deploy and interact with the contract <a href="#deploy-and-interact-with-the-contract" id="deploy-and-interact-with-the-contract"></a>

To complete this tutorial you'll use either Atlas or Remix. Select your preferred tool:

AtlasRemix

### Deploy the smart contract <a href="#deploy-the-smart-contract" id="deploy-the-smart-contract"></a>

Atlas is a browser-based IDE with an integrated AI assistant that allows you to write, test and deploy smart contracts directly from your browser. Click the button below to open the project in Atlas.

[Open smart contract in Atlas](https://app.atlaszk.com/templates/33EAJkwrTKFaDJiEuy9Om?chainId=300\&openFile=/contracts/TestToken.sol)

You can see the contract in the Atlas code editor. In the right sidebar, make sure the selected network is “Validium Testnet“ and click on **"Deploy"** to trigger the smart contract compilation and deployment.

Behind the scenes, Atlas is using the Validium custom solidity compiler (named `zksolc` ) to generate ZKEVM compatible bytecode. [Learn more about Validium custom compilers](/docs/components/compiler/compiler-toolchain-overview.md).

![ERC20 interact script in Atlas](/files/zmCafgwJSGUwrwMYPZBw)

Once compiled sign the transaction with your wallet and wait until its processed. You’ll see the contract in the **“Deployed contracts”** section.

### Interact with the ERC20 contract <a href="#interact-with-the-erc20-contract" id="interact-with-the-erc20-contract"></a>

In the `scripts` folder you can find the `mint-token.ts` script containing the following code:

```solidity
import { ethers } from "hardhat";

// Address of the ERC20 token contract
const TOKEN_CONTRACT_ADDRESS = "";
// Wallet that will receive tokens
const RECEIVER_WALLET = "";
// Amount of tokens to mint in ETH format, e.g. 1.23
const TOKEN_AMOUNT = "";

async function main() {
  const Token = await ethers.getContractFactory("TestToken");
  const tokenContract = Token.attach(TOKEN_CONTRACT_ADDRESS);

  console.log("Minting tokens...");

  const tx = await tokenContract.mint(
    RECEIVER_WALLET,
    ethers.parseEther(TOKEN_AMOUNT),
  );
  await tx.wait();

  console.log("Success!");
  console.log(
    `The account ${RECEIVER_WALLET} now has ${await tokenContract.balanceOf(
      RECEIVER_WALLET,
    )} tokens`,
  );
}

main()
  .then(() => process.exit(0))
  .catch((error) => {
    console.error(error);
    process.exit(1);
  });
```

This scripts uses `ethers` to interact with the contract we’ve just deployed.

Existing libraries like `ethers` , `viem` and `web3.js` can be used to interact with smart contracts deployed on Validium.

Fill the following variables:

* `TOKEN_CONTRACT_ADDRESS`: the contract address of the ERC20 token we just deployed.
* `RECEIVER_WALLET`: address of a different account that will receive new tokens.
* `TOKEN_AMOUNT`: the amount of tokens we’ll send to the account.

With the `mint-token.ts` file open in the Atlas editor, click on the “Deploy” button to run the script and see the output in the terminal.

![ERC20 interact script in Atlas](/files/eHLUQDJyEzYdapyRTI52)

To confirm the account has received the tokens, visit the [Validium Testnet explorer](https://sepolia.explorer.zksync.io/) and search the receiver wallet address. You’ll see the new token balance in the assets table:

![ERC20 tokens in account balance](/files/G4QfBuXHbRBM1XDbPm9h)

### Takeaways <a href="#takeaways" id="takeaways"></a>

* Validium **is EVM compatible** and supports existing smart contract libraries like OpenZeppelin
* **Use popular libraries like** `ethers` , `viem`, or `web3.js` to interact with smart contracts deployed on Validium.

The ERC20 token code is provided “as is” without any express or implied warranties.

* The regulatory regime governing digital assets is still developing and is unclear in many jurisdictions.
* ERC20 tokens may possess unique legal, tax, and market risks, so it is up to you to determine which, if any, laws apply to your deployment of ERC20 tokens.
* The developers and publishers of this software disclaim any liability for any legal issues that may arise from its use.

### Next steps <a href="#next-steps" id="next-steps"></a>

* Continue learning about [paymasters and paying transaction fees with this ERC20 token](/docs/start-coding/quickstart/paymasters-introduction.md).


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