I am looking to create a smart contract for bond payments. The idea is that a bond holder will get an asset representing the bond, receive periodic coupon payments and then at maturity can exchange the bond for the principal. I am unsure whether to use a non-fungible or fungible asset to represent …

I’m not sure I understand your solution correctly @fabrice . C_x is an escrow account (stateless smart contract), right - this is what I get from 1 and 1.b? How C_x can create an NFT (ref: 1 and 1.d)? In step 1.b: why A has to make a payment to buy a bond? In 1.e what kind of parameters do you ha…

I’m thinking about something along this lines, @jannotti . Let me describe the process: Bond is represented by a fungible token - ASA. Let’s call it B0. Whenever we know the coupon parameters: interest per unit of B0 token, we create: new token B1 escrow escrow account: DEX_0. The code of the co…

That sounds like it will work, but I’m not sure why the buyer needs to keep exchanging his B0 to B1, and so on. How about when you buy the bond, you get one P token (representing the amount you get back when the bond fully matures, often that will be the principal), and one each of several coupons …

Hi guys, I believe that the ASA way described by jannotti is better for bonds use case, however I see two major challanges: How do you ensure that the bond will be paid? If A issues the bonds, receives fe $100. D has debt $103 payable at maturity date. B buys the bonds in mid term for $101 C …

@jannotti is definitely better than mine for that use case. That being said, here are the answers to your questions: C_x a smart contract account, but not an escrow in the sense that it will not keep funds. It will only be used to create the NFT. C_x is a contract account, so as any account, it…

For the right solution of this problem we need to have a right specification, which we are missing. I assumed following specification: coupons are only created and delivered during certain period (In my proposal it’s B0, B1, … maturity). So you are not able to receive and trade future coupons. No…

BTW: In my proposal, we have only one ASA for coupons: C (we don’t have C1, C2, …). The coupon will have a constant denomination. Eg 1C = 0.0001 USD . Or 1C = 0.0001 USD + 2 something_else. I’m not sure if coupons have same representation across different epochs (so only the ratio per bond changes)…

I think everything you said is correct technically about my proposal, though I’d say your last bullet’s “shouldn’t have” clause is not a technical point, it’s a decision you can make about your use-case. For example, I think it’s perfectly reasonable that I could sell all my coupons to someone else…

Thanks for the response. Yes, using ASA is a clear advantage. I can sell my right to a future redeemable coupon by trading that coupon now with a third party I don’t know if this is correct. This allows to trade future revenues from bond without the bond itself. To note - one may not even hold …

We are implementing a Bond Token template. Here is the spec, would love to get you review. Don’t hesitate to comment in the document: Algorand Bond Template Introduction Bonds are units of corporate debt issued by companies and securitized as tradeable assets. …

Bond Implementation

General

robert October 6, 2021, 6:05pm 28

We implemented the Bond smart contract template with test suite and scripts to demo transactions and go through all use-cases. Fee free to share!

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Bond Implementation

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