Token Architecture

Bond Tokens achieve a balance between regulatory compliance and DeFi composability:

Full Fungibility:

• ERC-20 compatibility enables permissionless DEX trading and secondary market activity: no KYC required to buy, sell, or transfer
• Snapshot-based coupon (interest) payments ensure fungibility: coupon entitlements do not follow the token on transfer
• For lending, borrowing, collateral use, and auto-compounding, the Reinvestment Vault (vbtXXX) wraps Bond Tokens into a fully composable ERC-4626 token that integrates with any DeFi protocol

Technical Features:

• Transfer Resistance: Historical coupon entitlements immune to gaming
• Verifiable Distributions: Every proceeds flow (coupons, incentives, issuer calls, and maturity principal) is enforced onchain and auditable. Coupons and incentives use Merkle proofs over fixed snapshot entitlements and are cryptographically verifiable; calls and principal register net liabilities onchain, settle pro-rata with explicit solvency bounds, and never burn Bond Tokens without paying the matching stablecoin or minting the matching Principal Tokens.
• 18 Decimal Precision: Enables precise fractional ownership

Token Naming Conventions

Each Bond Token corresponds to a specific bond issue, following the naming convention btXXX, where XXX represents the first word of the issuer's name. This ensures clear identification across the platform and DeFi ecosystem:

Examples:

• A bond from Alpha Corporation → btALPHA
• A bond from Beta Enterprises → btBETA
• A bond from Gamma Holdings → btGAMMA

Vault Bond Tokens: Reinvestment Vault shares derived from a Bond Token follow the convention vbtXXX: for example, vbtALPHA for the vault share built on btALPHA. See Reinvestment Vault.

Claim tokens: Each Distribution pair is ctbtXXX (Coupon Token) and ptbtXXX (Principal Token), for example ctbtALPHA and ptbtALPHA. Each Reinvestment Vault pair is ctvbtXXX and ptvbtXXX, for example ctvbtALPHA and ptvbtALPHA. See Coupon and Principal Tokens.