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Bond Tokenization

Tokenized bond positions provides composability, unlocking opportunities for collateral and increase liquidity

When a bond is purchased, users receive a ERC-20 or ERC-1155 bond token to represent their position:

ERC-1155 are tokenized Fixed-Term bond positions

  • Each position vests for a set amount of time after purchase

  • Same-day purchase regardless of time of purchase (based on UTC timestamp) will receive the same token

ERC-20 are tokenized Fixed-Expiry bond positions

  • Fixed maturity (i.e. all purchases will vest at a specific timestamp)

  • Longer duration up to 9 months

Composability

Tokenized ERC-20 and ERC-1155 positions unlock a variety of use cases on secondary markets:

  • Collateral: Ability for Lending and Borrowing protocols to whitelist the tokenized bonds as collateral. For bonders, this introduces a new opportunity to access more capital and increases capital efficiency.

  • Liquidity: Ability to transform a previously illiquid asset into a liquid asset via fractionalization and secondary market composability.

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