Liquidity smart contracts are the most efficient way to turn the blockchain into a decentralized marketplace for secondary markets opportunities.

Liquidity smart contracts

At its core, the system enables these parties to post and browse trading intentions, known as Offers, through token-specific liquidity smart contracts. This innovation ensures that all offers are transparent and accessible on the blockchain, creating continuous live feeds of available trading intentions for all to see.

Further enhancing the system's utility, distribution platforms can tap into these live feeds of trading intentions, harvesting blockchain events to showcase offers to their clients and investors. This capability allows distribution platforms to enrich their services by incorporating digital assets into their portfolios. Depending on their licenses and service offering, they can bolster their value proposition by offering additional layers of service, such as curation of offers, advisory services, and automatic matching of trading intentions, among others. In essence, these platforms serve as intermediaries that connect investors with the burgeoning world of digital asset trading, facilitated by the blockchain's inherent transparency and security.

Built-in compliance

In order to leverage the blockchain as a foundational infrastructure for transferring and managing financial assets, it's crucial to simultaneously represent the various stakeholders through their blockchain identities, as well as the assets themselves along with their governance and compliance mandates.

To achieve this, a comprehensive suite of smart contracts is essential. Adopting industry standards is paramount to ensure all participants can forge a coherent and effective ecosystem. Highlighted below are the pivotal smart contracts utilized within this ecosystem:

• ERC-3643 for Asset Representation: This open-source standard caters to permissioned tokens, facilitating the compliant issuance and management of tokenized assets.
• ERC-734/735 (OnchainID) for Decentralized Identities: This standard facilitates the creation of blockchain identities using verifiable credentials, enabling a robust framework for identity verification and management.
• ERC-20 Payment Tokens for Transactional Currency: These tokens serve as the blockchain's currency, enabling the representation of real-world money within the blockchain ecosystem.
• Liquidity Smart Contracts for Market Transactions: Employed in both primary and secondary markets, these contracts underpin the creation and execution of offers, ensuring a seamless distribution mechanism for tokenized assets. Liquidity smart contracts can be parametrized and/or modified per token.

By implementing these standards, the ecosystem ensures a standardized, compliant, and efficient framework for asset management and identity validation on the blockchain.

Cross-Chain Capabilities and EVM Support

The liquidity smart contracts are designed for the efficient management and execution of market transactions. These contracts can be seamlessly deployed on any blockchain that supports the Ethereum Virtual Machine (EVM), showcasing the adaptability of our ecosystem to various blockchain environments.

Moreover, leveraging the cross-chain capabilities inherent in the EVM ecosystem, we plan to enable sophisticated transaction structures. This approach will facilitate transactions involving the tokenized asset on one blockchain network and the corresponding cash leg on another, thereby enhancing the fluidity and accessibility of digital assets across different blockchain platforms.

This strategic initiative underscores our commitment to fostering a truly interoperable and scalable blockchain infrastructure for financial assets.

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Smart contract Documentation

Complete smart contract documentation can be provided on demand by token issuers or their authorized agents.

Fees Structure

The liquidity smart contract includes 3 types of fees:

Fixed Fee:

• A fixed fee is charged for each takeOffer transaction.
• The fee amount, the token used for the fee, and the recipient of the fee are set by the owner of the T-REX token associated with the contract via the setFixedFee function.
• The fee is paid during the takeOffer process.

Volume-Based Fee:

• This fee is a percentage of the transaction volume, calculated in basis points (bps), where 100 bps equals 1%.
  The fee recipient and the fee rate (in bps) are set by the owner of the T-REX token using the setVolumeBasedFee function.
• The fee is capped at 100 bps (1%) to prevent excessive charges.
• This fee is paid during the takeOffer process.

Billboard Fee:

• This is a fee specific to the Billboard protocol and is required for every interaction (create, take, update, delete offer).
• The fee amount and token are set in the liquidity smart contract.
• This fee is paid during offer creation, updating, and cancellation.

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Note

This documentation has been written during ongoing discussions and is based on the version of the smart contract at the time of writing. The following logic is subject to change (most likely, billboard fees will not be set in this contract, but will be obtained via calling token contract directly and will be set via the factory)