Issuing Cefi securities on Defi platforms

  • issue tokenized securities registered in traditional, centralized securities depositories,
  • enable market makers and underwriters to create pairs of an offered security and multiple other digital assets that they use to underwrite the offered security,
  • run price discovery of tokenized securities on decentralized exchanges,
  • do allotments and refunds of subscriptions from investors, and
  • finally settle subscribed capital to issuers and transfer tokenized securities to subscribers, who can be investors as well as underwriters/market makers.
The Verified Network brings tokenized securities to the Balancer decentralized exchange
  1. Definition of a price band for price discovery during subscriptions in a primary issue of tokenized securities.
  2. Specifying the time by when subscriptions to a primary issue are to be closed.
  3. Dynamically changing weights of the assets (ie, the issued security and the assets such as stablecoins paired to them) making up the primary issue pool as the subscription (price discovery) process goes on. Changing the weights changes the price at which the issued security is available to subscribe with the paired asset (eg, stablecoin). Hence, changing demand for the issued security change weights in the pool which lead to price changes and which then influences demand for the issued security again. This process which repeats itself lead to price formation for the issued security.
  4. Reporting of subscribers and subscription data from the primary issue pool to the registrar of an issue for allotments.
  5. Refunds from the primary issue pool to subscribers whose subscriptions are not allotted securities.
  6. Draw down of subscription capital (ie, the asset paired to the issued security) from the primary issue pool for settlement to issuers.
  1. Registration of new financial products to be issued and obtaining registration information on products submitted by issuers.
  2. Approval of products by registrars trigger creation of a security token initialized with the product’s attributes, registration of the security token in internal securities registries on the blockchain, and posting of the security token to a contract which is customized to manage interaction with a specific decentralized exchange.
  3. Interaction with the Defi pool (eg, decentralized exchange, here Balancer) to ask for offers from market makers/underwriters, starting and closing the issue for investors, and allotments and refunds for investors.
  4. Offers by the liquidity providers such as market makers and underwriters that are managed by the Balancer specific contract to create pairs and pools for each pair on Balancer.
  5. Calculation of distributions and payout of distribution to security token holders.

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Entrepreneur, Technologist, Explorer. Tweets@BorahKallol

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Kallol Borah

Kallol Borah

Entrepreneur, Technologist, Explorer. Tweets@BorahKallol

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