What does ERC20 type mean in solidity contract?

Question

I came across Kyber Network DEX contract. On the very first line, they had declared a variable with ERC20 type as follows:

ERC20 constant internal ETH_TOKEN_ADDRESS = ERC20(0x00eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee);

And this is used throughout the contract. What does it means? As far I know, only address, uint, string, bytes, bool etc are some types.

Here's the code of smart contract: https://etherscan.io/address/0x964f35fae36d75b1e72770e244f6595b68508cf5#code

Answer 1

The Kyber Network DEX can be considered a program, or an application if you will, which contains more than one smart contracts.

That ERC20 variable type is defined at line 83 in the code and is an interface:

interface ERC20 {
    function totalSupply() public view returns (uint supply);
    function balanceOf(address _owner) public view returns (uint balance);
    function transfer(address _to, uint _value) public returns (bool success);
    function transferFrom(address _from, address _to, uint _value) public returns (bool success);
    function approve(address _spender, uint _value) public returns (bool success);
    function allowance(address _owner, address _spender) public view returns (uint remaining);
    function decimals() public view returns(uint digits);
    event Approval(address indexed _owner, address indexed _spender, uint _value);
}

So, whatever variable of type ERC20, needs to be an instance of a smart contract that implements that ERC20 interface.

Answer 2

In this context, ERC20 is the contract "class" that defines the interface you can use to interact with the contract in the given address.