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 or recording the matching stablecoin.
• 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.