Smart Contract Docs

The Frictionless protocol smart contracts are documented using the NATSPEC standard.

Frictionless Tokens

The Frictionless Tokens describe the tokens which are emitted by the Frictionless protocol to represent Asset, Securities and Deposits. These tokens are based on the ERC-3643 specification of IToken.

Compliance

These contracts define the compliance layer for permissioned network participants (KYC/AML, Sanctions, PEP screening), the offering rules and the transfer rules for tokens, which ensures transfers are conducted in line with the legal and regulatory guardrails of MiFID II.

Automated Fee Collection

The Frictionless protocol is designed to automate cash operations across the lifecycle of a fund, part of this automation is the collection of contracted fee structures within a fund, such as management and/or performance fees. The smart contracts for transfer, ERC20 swap and FX swaps may be programmed to automatically collect fees for Managers, opening new revenue streams for Managers whilst ensuring the visibility of fees for Investors and Managers alike.

Manager Contracts

The Manager Contracts are the main entry points to the Frictionless protocol, they perform market functions such as permission management, treasury operations, issuance, transfer and settlement of securities, and attestations of deposits (proof-of-reserve) for the underlying of FrictionlessFundDepositTokens.

Frictionless FX Swaps

Frictionless FX Swaps enable Investors to invest instantly, securely and risk-free at super low cost in multiple currencies.

The FX Swap contracts in the Frictionless protocol provide an instant/atomic swap of a currency pair at a quoted spot of forward rate.

ERC20 Swaps

ERC20 Swaps were designed by the developers in the Frictionless protocol to risk off permissionless stablecoins such as USDC or USDT.

Permissionless are a great innovation from the crypto markets which were designed for permissionless crypto referencing to US Dollars, however handling stablecoins for traditional institutional partners is still a risky proposition.

Using the ERC20 Converter contracts, FrictionlessFundDepositTokens can be converted to/from stablecoins using the Frictionless protocol to help Managers accept stablecoins whilst off-loading their associated risks, such as de-peg events, underlying community bank reliance and liquidity risks.