Bond Implementation

General
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The spec is in Dropbox page . You can comment on it. We are finishing the implementation, will be done next week in our GitHub repository. You can find more information about our templates at https://algobuilder.dev

We will create an article on the Algorand developer portal about the Bond token.

PS: check out our work on Permissioned / securities token.

1 Like
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are you with tinyman?

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i hope the barrier to entry is not steep. I know it’s bond but hopefully, there’s a place for retail

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I don’t know tinyman.

i hope the barrier to entry is not steep. I know it’s bond but hopefully, there’s a place for retail

What do you mean @Titi ? The bond token is not a beginner example, but it’s not that complex either.

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I mean i know bond requirements are high at least in the u.s. Oh i get what the application is trying to do

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I’m trying to recycle these ideas to create a perpetuity.

Would it be possible to achieve this with a one-token model?

I foresee a structure for interest claims with 4 total transactions:

  1. payment of interest to token holder
  2. asset transfer from holder to holder of the token
  3. asset freeze for remainder of interest claim period (signed by issuer)
  4. asset unfreeze at conclusion of interest claim period (signed by issuer)

Txns 3 & 4 are done to prevent double interest claims.
This implementation has the disadvantage of not being able to trade future interest payments…

But, do y’all think this could work?

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Yes, this will work with one token model if you freeze the token transfers for the period of distributing coupon payments. The problem is that assets are not transferrable during that time and if someone will miss it, he will not be able to claim the reward.

Other solution would be that the issuer will distribute funds:

  • he will take a snapshot of balances at a particular block number
  • based on that snapshot he will send all rewards.

The problems with this model are: it’s not trustless (you need to trust the issuer to send you your reward), issuer will have to cover all costs for transferring rewards.

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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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