The Frictionless protocol is an institutional-grade venue built on EVM-compatible smart contracts for the issuance, distribution and settlement of digital securities in the private markets. The process involves dematerializing credit & infrastructure funds, ETFs or AMCs into risk-profiled future cash flow tokens, in the form of ERC-3643 digital securities which are aligned with the distribution schedule of the Manager.

Features

• Issuance of permissioned, secure, transferrable, digital securities and programmable cash waterfalls for a variety of OnChainAssets such as private credit & infrastructure funds, ETF's Treasuries, AMCs, Tracker Certificates, etc

• Issuance of permissioned, secure, transferrable, deposit tokens in multiple FIAT currencies.

• Payment and settlement of digital securities using deposit tokens

• Conversion of ERC20 payment tokens to deposit tokens, enabling the risk-off of stablecoins for funds and Managers and the conversion of FX for USD-denominated stablecoins to specific FIAT deposit tokens.

• Ability to automatically collect fee structures for payment, settlement and conversion of digital securities, deposit tokens and ERC20 stablecoins.

• Frictionless FX Swap based on FX spot and forward rates between denominated FricitonlessFundDepositTokens.

Smart Contract Architecture

The Frictionless protocol is essentially a decentralised system of privacy-protecting proofs and permissioned tokens that can only be transferred under tight controls in accordance with the regulatory rules of the underlying funds and securities which are tokenized.

1. Identity Management - based on OnChainId all participants in the Frictionless protocol are permissioned with specific roles, defining the actions and token classes they can interact with.

2. Compliance - based on the ERC-3643 specification, upgradable modules for compliance enable the compliant transfer of token classes in the protocol.

3. Frictionless Tokens - based on the ERC-3643 specification, these are the tokens circulated in the protocol to represent securities, assets, cash contributions, cash distributions and settlements.

4. Treasury Management - provides the smart contract functions to mint, transfer and burn token classes in the protocol.

5. Proof-of-Reserve - provides independent attestations over the currencies underpinning FrictionlessFundDepositTokens.

6. Transfer Agency - provides the controlled transfer of tokens between participants under strict compliance. This also includes the facility to swap tokens, such as stablecoins with FrictionlessFundDepositTokens or FX swaps of FrictionlessFundDepositTokens of various denominations.

The Frictionless protocol is a market infrastructure for the issuance, trade, and settlement of digital securities in the private markets. The protocol caters for various roles and responsibilities both within the smart contracts and the API systems, enabling the various market functions to be performed according to the regulatory posture of Frictionless Markets S.à r.l, the legal issuer of digital securities in Luxembourg under MiFID II and the broader E.U.

The following diagram describes the high-level interaction and composition of a Frictionless token.

The Frictionless protocol is an upgradable and extensible market infrastructure. The protocol is developed by the IP company DEFYCA Labs S.à.r.l, which develops the smart contract suite under the permissive MIT license.

The roadmap for the Frictionless protocol smart contracts includes:

1. Fundamental Analysis - Using the PERMISSIONED_CALCULATING_AGENT role to provide fundamental analysis on underlying portfolios via smart contracts in privacy-protecting mode.

2. Qualified Transfer Agents - Opening access to 3rd party transfer agents to execute the transfer and settlement of securities issued on the Frictionless protocol in accordance with local regulatory posture.

3. Portfolio Re-Balancers - A suite of smart contracts which enable PERMISSIONED_INVESTORS to automatically re-balance their portfolio of investments according to their specific investment goals.

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

Interface defining the token factory for all tokens in the Frictionless protocol.

Functions

setTreasuryManager

Sets the Treasury Manager to be the specified address.

Parameters

deployFundDepositToken

Deploys the FrictionlessFundDepositToken contract as a proxy

Parameters

Returns

deployDigitalSecurityToken

Deploys the FrictionlessDigitalSecurityToken contract as a proxy

Parameters

Returns

deployOnChainAssetToken

Deploys the FrictionlessOnChainAssetToken contract as a proxy

Parameters

Returns

treasuryManager

returns the address of the treasuryManager

Returns

existingFrictionlessTokens

Checks whether a given token address is an existing frictionless token

Parameters

Returns

Events

FrictionlessTokenDeployed

Event emitted upon successful deployment of a compliance contract.

Errors

FrictionlessTokensFactoryZeroAddress

error thrown if an attempt to set a zero address contract during function setTreasuryManager

FrictionlessTokensFactoryNotATreasuryManager

error thrown if the msg.sender is not the treasury manager during the functions deployFundDepositToken, deployDigitalSecurityToken, or deployOnChainAssetToken

Structs

BaseTokenInitParams

Struct to represent the base contract data to deploy a Frictionless token contract.

The Frictionless protocol is the technology enabler which translates real-world investments into legal, compliant and transferrable tokenized securities through a Luxembourg structure, operated by Frictionless Markets S.à r.l and its securitization structures.

There are many tokenization offerings in the market place and the industry is witnessing new entrants each with its respective niche and focus. The Frictionless protocol focus is specifically on the private markets and specifically on providing the legally compliant market infrastructure to enable Managers and GPs to tokenize their funds and offerings, whilst offering Investors a frictionless, low minimum, and transparent access point to the private markets on a global basis.

Core Layers

As a market infrastructure, the Frictionless protocol provides the three core layers to enable Investors to invest in the best private markets offerings on a global basis. These sections cover the basics of securitization, tokenization and distribution.

1. Securitization

The Frictionless Markets team supports a wide variety of securitizations in Luxembourg. The securitizations can be "true sale" or "synthetic" securitizations and are issued from bankruptcy remote and orphan entity-protected structures.

A securitization transaction involves establishing a securitization entity in Luxembourg to assume the risk associated with future cash flows tied to receivables, assets, or activities conducted by third parties known as the Underlying Assets. Simultaneously, the entity issues securities, typically in the form of notes, whose yield and value are connected to the performance of the Underlying Assets. These securities are then offered to professional investors on the financial markets in a tokenized format using the Frictionless protocol.

The Frictionless Markets team establishes and operates the securitization structures, providing the fund administration, fund structuring, cash operations and fund reporting services under Luxembourg securitization law.

2. Tokenization

The Frictionless protocol includes:

1. A suite of smart contracts to represent:

   1. Funds/Notes - Frictionless OnChain Assets: The FrictionlessOnChainAssetToken represents a listed fund with the informational and legal rights to the underlying. This includes all the informational rights on the underlying and its associated maturity. A FrictionlessOnChainAssetToken is issued as a digital twin for each specific note in a compartment within the Frictionless Markets fund structure.
6. APIs and a Tokenization Engine to orchestrate and automate complex Manager workflows such as:

   1. Subscriptions

   2. Capital Calls

   3. Cash Distributions

   4. Portfolio Compositions

7. Wallet Infrastructure enabling the custody of tokenized funds/notes, the collection of fees, custody of ERC20 stablecoins for the PROTOCOL_TREASURY and the wallet infrastructure required to sign and execute transactions on the blockchain.

The Frictionless Markets team operates the protocol, granting access to Managers to tokenize their funds and automate their fund administration services from the Frictionless Markets Manager Interface, API or smart contracts.

3. Distribution

Managers can onboard Investors directly or link into permissioned distribution agents on the Frictionless protocol to distribute their tokenized securities on a global basis., these include:

1. Private Placement Agents

2. Global Wealth Advisors

3. Private Banks

4. Digital Security Exchanges

Investors invest via subscriptions or subscription contracts to the tokenized fund/note in accordance with MiFID II regulation.

The investment and settlement of tokenized securities are carried out using Frictionless Deposit Tokens, which is a non-invasive and seamless conversion between FIAT contributions or settlement and their tokenized representation.

The Frictionless Markets team operates the protocol, granting access to Distribution Agents and their Investor base to a wide variety of tokenized funds from the world's best GPs and Managers.

Distribution Agents can manage:

• Subscriptions to Funds for their Investor base.

• Capital Calls and reporting for their Investor base.

• Cash Distributions and reporting for their Investor base.

• Portfolio Compositions for their Investor base.

Supported Securitizations

Securitization encompasses a wide range of asset types, including:

1. Receivables such as loans

2. Liquid assets like bonds or securities

3. Illiquid assets including private equity and real estate

4. Derivative instruments

5. Intellectual property generating royalty streams

6. Cash flow associated with risk or contractual agreements

7. Shares in other entities, PE, Credit, Infrastructure funds, or deals

Frictionless Markets supports the issuance of Notes, Tracker Certificates, and Actively Managed Certificates in multiple currencies. In general, the Frictionless Markets team and the Frictionless protocol support the following securitization & tokenization use cases:

• Tokenized Private Equity Funds.

• Tokenixed Private Credit and Infrastructure Funds.

• Tokenized Real Estate Funds, REITs, and Property Club Deals.

• Tokenized Commodities & Certificated Commodity Funds.

• Tokenized Art, Collectibles, Music Rights, IP Rights, Image Rights & their future cash flows.

• Tokenized Liquid Government Debt in the form of ETFs, Repos, and Treasuries.

• Tokenized Crypto Funds, Crypto ETFs.

• Tokenized Hedge Funds.

Lifecycle of a Transaction

The act of correctly securitizing an undertaking, legally and in compliance with the laws of Luxembourg, and thereafter tokenizing into legally compliant tokenized (digital) securities for distribution to permissioned Investors is a complex end-to-end transaction. This section covers the high-level details of the lifecycle of a transaction which holds true for any type of tokenized offering undertaken by Frictionless Markets.

1. Establishment of the correct Luxembourg securitization structure.

   1. The Frictionless Markets team will create the PPM (private placement memorandum) and the Final Terms for the securitization undertaking.

   2. The Frictionless Markets team creates the compartment, bank accounts of the compartment and the permissioning/provisioning of the necessary wallet infrastructure to execute the tokenization.

   3. All relevant statutory reporting and regulatory obligations for the structure are handled by the Frictionless Markets team, including AML6, SARs, CRS, FATCA, FATF, ManCo Reporting, etc.

2. Tokenization of the undertakings.

   1. The Manager is permissioned on the Frictionless protocol.

   2. Managers can onboard Investors via subscriptions or subscription contracts to the tokenized fund/note in accordance with MiFID II regulation.

   3. The Manager can issue notes, and capital calls*, and run cash distributions** from the Frictionless Markets UI, via integration with the Frictionless Markets API or directly via the smart contracts.

3. Distribution of the tokenized securities.

   1. Managers can onboard Investors directly or link into permissioned distribution agents on the Frictionless protocol to distribute their tokenized securities on a global basis.

   2. Capital Calls* automatically execute upon Investors' subscriptions to a fund/funds, converting FIAT contributions to Frictionless Deposit Tokens and releasing Frictionless Digital Securities to record the transaction on-chain.

   3. Cash Distributions ** automatically distribute income and return of the underlying to the Investors, settling the Frictionless Digital Securities with Frictionless Deposit Tokens, thereafter handling the FIAT settlement in the securitization transaction.

Inherits: IToken

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

The IBasicFrictionlessToken Represents the base interface for Frictionless protocol tokens, this interface is used to determine a token type.

Functions

setFrictionlessTokenType

Sets the token type according to the specified enumeration

function setFrictionlessTokenType(FrictionlessTokenTypes newTokenType_) external;

Parameters

getFrictionlessTokenType

Returns the token type according to the specified enumeration

function getFrictionlessTokenType() external view returns (FrictionlessTokenTypes);

Returns

Errors

BasicFrictionlessTokenUnableToUpdateFrictionlessTokenType

error thrown if an attempt to set an invalid token type during function setFrictionlessTokenType

error BasicFrictionlessTokenUnableToUpdateFrictionlessTokenType();

Enums

FrictionlessTokenTypes

Enumeration to represent each of the tokens in the Frictionless protocol.

enum FrictionlessTokenTypes {
    NONE,
    FUND_DEPOSIT_TOKEN,
    DIGITAL_SECURITY_TOKEN,
    ON_CHAIN_ASSET_TOKEN
}

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.

The compliance modules are upgradeable and are tied to specific tokens.

Inherits: IBasicFrictionlessToken

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

A Fund Deposit Token represents a permissioned Investors FIAT contribution to a specific fund IBAN in a denominated FIAT currency. The Fund Deposit Token is used as a means of payment and settlement. The Fund Deposit Token can only be transferred between permissioned Investors in the fund. A daily attestation of the fund IBAN serves to prove the 1:1 backing with FIAT. Exclusively under Frictionless Markets S.à.r.l issuance terms Investors holding a FrictionlessFundDepositToken have the legal right to the FIAT value held in the fund IBAN account.

Functions

setInitData

Sets the immutable data for the FrictionlessFundDepositToken

function setInitData(FFDImmutableData calldata initData) external;

Parameters

getCurrency

Get the currency the FIAT denomination of the deposit token.

function getCurrency() external view returns (string memory);

Returns

getDescription

Get the description the description of the deposit token.

function getDescription() external view returns (string memory);

Returns

getFundIBAN

Get the IBAN which Frictionless Markets S.à.r.l holds a matching FIAT currency ledger with a G-SIB for this currency, attestations are provided on this IBAN. This is restricted to onlyAgent roles.

function getFundIBAN() external returns (string memory);

Returns

Errors

FrictionlessFundDepositTokenUnableToUpdateInitData

error throw if there is an attempt to modify the immutable data.

error FrictionlessFundDepositTokenUnableToUpdateInitData();

Structs

FFDImmutableData

Struct which represents the immutable data in the Token. Once set it cannot be modified.

struct FFDImmutableData {
    string currency;
    string description;
    string fundIBAN;
}

Inherits: IModularCompliance

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

The IFrictionlessModularCompliance is responsible for the compliant transfer of the various Tokens in the Frictionless protocol.

Functions

init

Initializes the modular compliance, sets the maximum allowable modules per token and adds the modules provided

Parameters

updateMaxModulesCount

Set the maximum number of allowable modules which can be bound.

Parameters

addModules

Adds modules based on the array of module addresses provided

Parameters

removeModules

Removes modules based on the array of module addresses provided

Parameters

maxModulesCount

Returns the maximum number of allowable modules which can be bound.

Returns

Events

MaxModulesCountUpdated

Emitted during updateMaxModulesCount to inform of new modules max count updates

ModulesAdded

Emitted during addModules to inform of new modules added

ModulesRemoved

Emitted during removeModules to inform of modules removed

Errors

FrictionlessIsZeroAddress

thrown if specific address is zero.

FrictionlessModularComplianceZeroMaxModulesCount

thrown if an attempt to set the maximum number of allowable modules to zero is made in updateMaxModulesCount

FrictionlessModularComplianceModuleIsAlreadyBound

thrown if an attempt to add an already existing module during addModules

FrictionlessModularComplianceModuleDoesNotExist

thrown if module for the given address is not already bound by the modifier onlyExistingModule

FrictionlessModularComplianceMaxModuleCountReached

thrown if an attempt to add more than the allowable modules during addModules

FrictionlessModularComplianceCallerNotATokenOrOwner

thrown during bindToken or unBindToken if the caller is not the owner or the bound token address

FrictionlessModularComplianceCallerNotAToken

thrown if the the msg.sender is not the bound token address during modifier onlyToken

Inherits: IBasicFrictionlessToken

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

Implementation of the storage of the underlying OnChain Asset and it's data.

Functions

setSpecificationData

Sets the specData data for the FrictionlessOnChainAssetToken. throws FrictionlessOnChainAssetTokenUnableToUpdateData This data is immutable, an attempt to modify will generate the error FrictionlessOnChainAssetTokenUnableToUpdateData

function setSpecificationData(FOCASpecData calldata specData) external;

Parameters

setIssuanceData

Sets the issuanceData data for the FrictionlessOnChainAssetToken throws FrictionlessOnChainAssetTokenUnableToUpdateData This data is immutable, an attempt to modify will generate the error FrictionlessOnChainAssetTokenUnableToUpdateData

function setIssuanceData(FOCAIssuanceData calldata issuanceData) external;

Parameters

setUpdateData

Sets the updatable data for the FrictionlessOnChainAssetToken

function setUpdateData(FOCAUpdateData calldata updateData) external;

Parameters

getSpecificationData

Get the specData data for the FrictionlessOnChainAssetToken.

function getSpecificationData() external view returns (FOCASpecData memory);

Returns

getIssuanceData

Get the issuanceData data for the FrictionlessOnChainAssetToken.

function getIssuanceData() external view returns (FOCAIssuanceData memory);

Returns

getUpdateData

Get the updateData data for the FrictionlessOnChainAssetToken.

function getUpdateData() external view returns (FOCAUpdateData memory);

Returns

getCurrency

Get the currency the FrictionlessOnChainAssetToken is issued in.

function getCurrency() external view returns (string memory);

Returns

Errors

FrictionlessOnChainAssetTokenUnableToUpdateData

error throw if there is an attempt to modify the immutable data.

error FrictionlessOnChainAssetTokenUnableToUpdateData();

Structs

FOCASpecData

The specification data for the FrictionlessOnChainAssetToken, this is an immutable data struct.

struct FOCASpecData {
    uint256 issuedOn;
    uint256 maturityDays;
    FrictionlessOnChainAssetSchedule schedule;
    FrictionlessOnChainAssetPaymentFrequency paymentFrequency;
    FrictionlessOnChainAssetYieldType yieldType;
    string baseCurrency;
    uint256 stripTotal;
    string name;
    string symbol;
}

FOCAIssuanceData

The issuance data for the FrictionlessOnChainAssetToken, this is an immutable data struct.

struct FOCAIssuanceData {
    uint256 auctionedOn;
    FrictionlessOnChainAssetPriceStatus priceQuoteStatus;
    string onChainAssetUUID;
    string issuerUUID;
    string isin;
    string issuanceDocs;
    string assetClass;
}

FOCAUpdateData

The uopdatable data for the FrictionlessOnChainAssetToken.

struct FOCAUpdateData {
    uint256 maturesOn;
    uint256 total;
    FrictionlessOnChainAssetStatus status;
    uint256 yield;
    FrictionlessOnChainAssetRiskGrade riskGrade;
    uint256 pullToParValue;
    address custodianAddress;
}

Enums

FrictionlessOnChainAssetSchedule

Enum for the schedule of the payments by the Manager, either pro_rat or coupon/bullet style.

enum FrictionlessOnChainAssetSchedule {
    SCHEDULE_COUPON_ONLY,
    SCHEDULE_PRO_RATA
}

FrictionlessOnChainAssetPaymentFrequency

Enum for the periodicity of payments by the Manager

enum FrictionlessOnChainAssetPaymentFrequency {
    PAYMENT_FREQUENCY_DAILY,
    PAYMENT_FREQUENCY_WEEKLY,
    PAYMENT_FREQUENCY_MONTHLY,
    PAYMENT_FREQUENCY_QUARTERLY,
    PAYMENT_FREQUENCY_SEMI_ANNUALLY,
    PAYMENT_FREQUENCY_ANNUALLY,
    PAYMENT_FREQUENCY_SINGLE
}

FrictionlessOnChainAssetYieldType

Enum for the yield for this FrictionlessOnChainAssetToken is a fixed/floating rate

enum FrictionlessOnChainAssetYieldType {
    YIELD_FIXED,
    YIELD_FLOATING
}

FrictionlessOnChainAssetPriceStatus

Enum for the price quote status obtained at auction

enum FrictionlessOnChainAssetPriceStatus {
    PRICE_QUOTE_STATUS_UNDER_SUBSCRIBED,
    PRICE_QUOTE_STATUS_PRICED_AT_PAR,
    PRICE_QUOTE_STATUS_PRICED_AT_DISCOUNT,
    PRICE_QUOTE_STATUS_PRICED_AT_PREMIUM
}

FrictionlessOnChainAssetStatus

Enum for the current status of the FrictionlessOnChainAssetToken. Updated over time by the Treasury

enum FrictionlessOnChainAssetStatus {
    STATUS_MINTED,
    STATUS_PURCHASED,
    STATUS_MATURED,
    STATUS_IMPAIRED,
    STATUS_REDEEMED
}

FrictionlessOnChainAssetRiskGrade

Enum for the current S&P style riskGrade of the FrictionlessOnChainAssetToken. Updated over time by the Manager/Treasury/Risk Oracle.

enum FrictionlessOnChainAssetRiskGrade {
    BER_AAA,
    BER_AA,
    BER_A,
    BER_BBB,
    BER_BB,
    BER_B,
    BER_CCC,
    BER_CC,
    BER_C,
    BER_D,
    BER_UNRATED
}

Inherits: IBasicFrictionlessToken

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

This is the permissioned & transferable digital security which represents the future cash flow from the FrictionlessOnChainAssetToken and is purchased by the Investor using FrictionlessFundDepositTokens. These digital securities are permissioned and transferable between permissioned Investors in a permissioned secondary market. This token is linked to the FrictionlessOnChainAssetToken and denominated in a FIAT currency at a future date for settlement.

Functions

setInitData

Sets the immutable data for the FrictionlessDigitalSecurityToken

function setInitData(FDSImmutableData calldata initData) external;

Parameters

setUpdateData

Sets the updatable data for the FrictionlessDigitalSecurityToken

function setUpdateData(FDSMutableData calldata mutableData) external;

Parameters

getCurrency

Get the baseCurrency is the FIAT denomination of the digital security, this is the currency the FrictionlessOnChainAssetToken is issued in.

function getCurrency() external view returns (string memory);

Returns

getTokenType

Get the type of the token as defined in the enum FrictionlessDigitalSecurityTokenType.

function getTokenType() external view returns (FrictionlessDigitalSecurityTokenType);

Returns

getOnChainAssetAddress

Get the onChainAssetAddress the address of the FrictionlessOnChainAssetToken for which this token is a future cash distribution.

function getOnChainAssetAddress() external view returns (address);

Returns

getMaturesOn

Get the maturity date of the digital security.

function getMaturesOn() external view returns (uint256);

Returns

Errors

FrictionlessDigitalSecurityTokenInitDataHasAlreadyBeenSet

error throw if there is an attempt to modify the immutable data.

error FrictionlessDigitalSecurityTokenInitDataHasAlreadyBeenSet();

Structs

FDSImmutableData

Struct which represents the immutable data in the Token. Once set it cannot be modified.

struct FDSImmutableData {
    string baseCurrency;
    FrictionlessDigitalSecurityTokenType tokenType;
    address onChainAssetAddress;
}

FDSMutableData

Struct which represents the updatable data in the Token. This data can be modified by the Agent only.

struct FDSMutableData {
    uint256 maturesOn;
}

Enums

FrictionlessDigitalSecurityTokenType

enum FrictionlessDigitalSecurityTokenType {
    COUPON,
    STRIP
}

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.

There are four main manager contracts in the Frictionless protocol, as described below.

The FrictionlessPermissionsManager defines a set of functions and events related to managing participants' permissions in the Frictionless protocol.

The interface includes an enumeration FrictionlessPermissionedUser that enumerates different participants in the Frictionless protocol, such as PROTOCOL_TREASURY, PERMISSIONED_CUSTODIAN, etc.

Only valid agents can register, add or remove users and their associated claims.

The FrictionlessTransferManager manages the transfer of tokens within the Frictionless protocol. It is also responsible for the collection of fees associated with the exchange of tokens. These fees are mapped to specific fee schedules set by managers on their respective issuances.

onlyTreasury Mode

exchangeTokens , this function will execute the exchange of tokens between two counterparties, but it is executed by the PROTOCOL_TREASURY as the transfer agent optionally collecting fees. For example, payment in FrictionlessFundDepositToken by an Investor for FricitonlessDigitalSecurityToken held by a custodian (Primary trade) or FricitonlessDigitalSecurityToken held by another Investor (secondary trade).

The exchange flow is as follows:

1. The PROTOCOL_ADMIN optionally sets the transfer fees for the token inbound and outbound.

2. The PROTOCOL_TREASURY invokes the exchangeTokens function, indicating the polarity of the transaction, such as cash for cash, cash for security, security for cash, or security for security. There are many options, but they all result in the same outcome, the compliant transfer of a Frictionless token for another Frictionless token in a single atomic transaction on-chain.

3. The transfer is enacted using the ERC-3643-compliant token transfer IToken.forcedTransfer.

onlyCounterpart Mode

createTransferOffer confirmTransferOffer, cancelTransferOffer these functions will execute the exchange tokens in a bilateral P2P mode between two counterparties in a maker-taker mode. This mode also optionally enables the protocol to collect fees.

The exchange flow is as follows:

1. The PROTOCOL_ADMIN optionally sets the transfer fees for the token inbound and outbound.

2. Investor X invokes the createTransferOffer function, indicating the offer, such as cash for cash, cash for security, security for cash, or security for security. There are many options, but they all result in the same outcome, the compliant transfer of a Frictionless token for another Frictionless token in a single atomic transaction on-chain.

3. Investor Y can accept the offer by invoking the confirmTransferOffer function, ensuring the ERC-3643-compliant token transfer using IToken.transferFrom.

1. Token Minting and Management:

   • The contract provides functions to mint different types of tokens within the Frictionless protocol, including Fund Deposit Tokens (mintFundDepositForTreasury), Digital Security Tokens (mintDigitalSecurity), and On-Chain Asset Tokens (mintOnChainAsset).

   • Tokens are associated with compliance contracts, and their minting is subject to specific conditions, roles, and permissions.

2. Token Transfer and Burning:

   • The contract allows for the transfer and burning of tokens through functions like transferToken and burnToken. These actions are performed by an agent with the necessary permissions.

3. Fund Deposit Token Management:

   • The contract keeps track of existing Fund Deposit Tokens using a mapping _existingFundDepositTokens. It prevents the creation of duplicate Fund Deposit Tokens for the same currency and fund IBAN.

The PROTOCOL_ADMIN is the only role permissioned to initially mint any Frictionless tokens, thereafter valid agents such as the PROTOCOL_TREASURY are permitted to increase supply (mint to address), transfer and burn Frictionless tokens.

The FrictionlessAttestationManager responsible for providing attestations of the balances held in the underlying funding account for each FrictionlessFundDepositToken. The attestation is provided and signed by an independent 3rd party, known as PERMISSIONED_FUND_ACCOUNTANT in the Frictionless protocol.

Inherits: IAbstractFeeModule

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

The IFrictionlessTransferManager is responsible for the management of the various transfer methodologies, fees processing, and defined control paradigm for DvP for all tokens in the Frictionless protocol. The tokens and their lifecycles are defined in the public README for the Frictionless protocol at https://gitlab.com/dfyclabs/protocol/dfyclabs-tokens/-/blob/main/README.md?ref_type=heads#funds-flows

Functions

updateMinRedeemAmount

Set a minimum redemption amount, to ensure there is meaningful settlement amounts, generally this is used to ensure FIAT transfers are above a minimum banking threshold, such as 1 USD.

function updateMinRedeemAmount(uint256 newMinRedeemAmount_) external;

Parameters

setTransferFees

Set the transfer fees for the exchange/settlement of a token pair. The fees can be any combination of zero (0%) or upto 10000 bps (100%) on any directional transfer. Fees can only be set by the Owner (PROTOCOL_ADMIN).

function setTransferFees(TokenFeeInfo calldata token0FeeInfo_, TokenFeeInfo calldata token1FeeInfo_) external;

Parameters

setTokenFee

Set the fee associated with the transfer of a Token and manages the mapping of the key to this set of Fees. Can only be set by the Owner (PROTOCOL_ADMIN).

function setTokenFee(bytes32 tokenFeeKey_, TokenFeeInfo calldata tokenFeeInfo_) external;

Parameters

exchangeTokens

Executes a token pair exchange. This function can only be invoked by the PROTOCOL_TREASURY

function exchangeTokens(TokenTransferData memory token0TransferData_, TokenTransferData memory token1TransferData_)
    external;

Parameters

createTransferOffer

Initiates/Creates a transferOffer between a token pair exchange. Setting the transfer status to PENDING for state management of the overall transfer. This function generates a transferOfferId_ which is returned so invokers of the function can perform further functions such as confirmTransferOffer or cancelOffer.

function createTransferOffer(TokenTransferData memory token0TransferData_, TokenTransferData memory token1TransferData_)
    external
    returns (uint256);

Parameters

Returns

redeemTokens

Redeem/Burn an amount for tokens for the specified tokenAddr_ and msg.sender

function redeemTokens(address tokenAddr_, uint256 redeemAmount_) external;

Parameters

redeemERC20Tokens

Redeem/Burn an amount for tokens for the specified ERC20 tokenAddr_ and msg.sender, this will convert the ERC20 token to a FrictionlessFundDepositToken first, then redeem See {IFrictionlessERC20ConverterManager-isTokenSupported} {IFrictionlessERC20ConverterManager-convertFromERC20}

function redeemERC20Tokens(address erc20Token_, address fundDepositToken_, uint256 tokenRedeemAmount_) external;

Parameters

redeemTokensFrom

Redeem/Burn an amount for tokens for the specified tokenAddr_ and userAddr_. This function can only be invoked by the PROTOCOL_TREASURY

function redeemTokensFrom(address tokenAddr_, address userAddr_, uint256 redeemAmount_) external;

Parameters

redeemERC20TokensFrom

Redeem/Burn an amount for tokens for the specified ERC20 tokenAddr_ and userAddr_. This will convert the ERC20 token to a FrictionlessFundDepositToken first, then reedem. This function can only be invoked by the PROTOCOL_TREASURY See {IFrictionlessERC20ConverterManager-isTokenSupported} {IFrictionlessERC20ConverterManager-convertFromERC20}

function redeemERC20TokensFrom(
    address erc20Token_,
    address fundDepositToken_,
    address userAddr_,
    uint256 tokenRedeemAmount_
) external;

Parameters

confirmTransferOffer

Confirms and processes the transfer for the respective transferOfferId_, which results int he compliant token transfers under ERC-3643 specification to occur.

function confirmTransferOffer(uint256 transferOfferId_) external;

Parameters

cancelTransferOffer

Cancels a transfer for the given transferOfferId_, which results in the transfer status being set to TransferStatuses.CANCELED and the relevant FrictionlessTransferOfferCanceled being emitted.

function cancelTransferOffer(uint256 transferOfferId_) external;

Parameters

nextTransferOfferId

Generates the next transferOfferId in the smart contract, used to store state of a transfer.

function nextTransferOfferId() external view returns (uint256);

Returns

minRedeemAmount

Get the minimum redemption amount configured

function minRedeemAmount() external view returns (uint256);

Returns

getTransferData

Returns the transfer data stored for the given transferOfferId_

function getTransferData(uint256 transferOfferId_) external view returns (TransferData memory);

Parameters

Returns

getTransferFeesInfo

get the tokenFeeInfo set for the fees associated per token in an exchange.

function getTransferFeesInfo(address token0_, address token1_) external view returns (FeeInfo memory, FeeInfo memory);

Parameters

Returns

getTransferFeeKeys

Generates keys based on the packed encoding of the addresses of sets of tokens using the keccak256 hashing function. Used to store tokenFees in mappings.

function getTransferFeeKeys(address token0_, address token1_) external view returns (bytes32, bytes32);

Parameters

Returns

getTokenFeeKey

Generates a key based on the packed encoding of the addresses of both tokens using the keccak256 hashing function. Used to store tokenFees in mappings.

function getTokenFeeKey(address token0_, address token1_) external view returns (bytes32);

Parameters

Returns

Events

FrictionlessTransferOfferCreated

Event emitted during createTransferOffer

event FrictionlessTransferOfferCreated(uint256 transferId);

FrictionlessTransferOfferConfirmed

Event emitted during confirmTransferOffer

event FrictionlessTransferOfferConfirmed(uint256 transferId);

FrictionlessTransferOfferCanceled

Event emitted during cancelOffer

event FrictionlessTransferOfferCanceled(uint256 transferId);

FrictionlessTokensExchanged

Event emitted during exchangeTokens

event FrictionlessTokensExchanged(TokenTransferData token0TransferData, TokenTransferData token1TransferData);

FrictionlessTokensRedeemed

Event emitted during redeemTokens and redeemTokensFrom

event FrictionlessTokensRedeemed(address tokenAddr, address userAddr, uint256 redeemAmount);

Errors

FrictionlessTransferManagerInvalidTokenAddresses

error thrown during setTransferFees, setTransferFees, exchangeTokens or createTransferOffer if any of the token addresses are zero.

error FrictionlessTransferManagerInvalidTokenAddresses(address token0, address token1);

FrictionlessTransferManagerInvalidTokenSenderAddresses

error thrown during exchangeTokens or createTransferOffer if any of the tokenSender address in an exchange is a zero address

error FrictionlessTransferManagerInvalidTokenSenderAddresses(address token0Sender, address token1Sender);

FrictionlessTransferManagerInvalidTokensPairForRedeem

error FrictionlessTransferManagerInvalidTokensPairForRedeem(address erc20Token, address funDepositToken);

FrictionlessTransferManagerCannotTransferToken

error thrown during createTransferOffer if the token transfer is prohibited under Compliance contract rules

error FrictionlessTransferManagerCannotTransferToken(address tokenAddr, address from, address to, uint256 amount);

FrictionlessTransferManagerZeroAddress

error thrown during redeemTokens or redeemTokensFrom if the token address or the msg.sender is a zero address

error FrictionlessTransferManagerZeroAddress();

FrictionlessTransferManagerZeroAmount

error thrown during exchangeTokens, createTransferOffer, redeemTokens or redeemTokensFrom if any of the token amounts are zero

error FrictionlessTransferManagerZeroAmount();

FrictionlessTransferManagerRedeemAmountIsLessThanMinimum

error thrown when the redemption amount is below the configured minimum, during redeemTokens or redeemERC20Tokens

error FrictionlessTransferManagerRedeemAmountIsLessThanMinimum(uint256 redeemAmount);

FrictionlessTransferManagerNotEnoughTokens

error thrown during exchangeTokens, createTransferOffer, redeemTokens or redeemTokensFrom if the balance of any of the tokens held by any users in the transfer is below the transfer amount

error FrictionlessTransferManagerNotEnoughTokens(address tokenAddr, address userAddr, uint256 tokensToTransfer);

FrictionlessTransferManagerInvalidTransferStatus

error thrown during confirmTransferOffer or cancelOffer if the transfer status expectedStatus does not match the actualStatus

error FrictionlessTransferManagerInvalidTransferStatus(TransferStatuses expectedStatus, TransferStatuses actualStatus);

FrictionlessTransferManagerNotEnoughPermissions

error thrown during createTransferOffer or confirmTransferOffer if any of the msg.sender is not an Agent of the tokens in the transfer.

error FrictionlessTransferManagerNotEnoughPermissions();

Structs

TokenFeeInfo

TokenFeeInfo represents the fee (zero or otherwise) that is associated with the transfer of a token in the Transfer Manager exchange.

struct TokenFeeInfo {
    address tokenAddr;
    FeeInfo feeInfo;
}

TokenTransferData

TokenTransferData represents the data set in a transfer of a token

struct TokenTransferData {
    address tokenAddr;
    address tokenSender;
    uint256 tokenAmount;
}

TransferData

TransferData represents a maker/taker model of transfer, where 1 token is exchanged for another

struct TransferData {
    TokenTransferData token0Data;
    TokenTransferData token1Data;
    uint256 feeInBps0;
    uint256 feeInBps1;
    TransferStatuses status;
}

Enums

TransferStatuses

Enumeration to track transfer statuses

enum TransferStatuses {
    NONE,
    PENDING,
    CONFIRMED,
    CANCELED
}

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

The IFrictionlessPermissionsManager is responsible for the management of permission of the various participants in the Frictionless protocol. The roles and responsibilities are defined in the public README for the Frictionless protocol at https://gitlab.com/dfyclabs/protocol/dfyclabs-tokens/-/blob/main/README.md?ref_type=heads#roles-responsibilities

Functions

isPermissioned

Validates if a wallet address is permissioned in the Frictionless protocol

function isPermissioned(address userAddress) external view returns (bool);

Parameters

Returns

registerIdentity

Registers a users wallet address as an OnChainId (Identity) to the Frictionless protocol. This Identity is used when permissioning a user to the protocol by invoking the addUser function later.

function registerIdentity(address userAddress, uint16 userISOCountry) external returns (address);

Parameters

Returns

getIdentity

Gets a users OnChainId (Identity) in the Frictionless protocol.

function getIdentity(address userAddress) external returns (address);

Parameters

Returns

getClaimMsgHash

Get the signed claimData message to be used in the addUser function. The message must be signed using the PK of the ClaimIssuer (PROTOCOL_ADMIN)

function getClaimMsgHash(address userIdentity, IFrictionlessPermissionsManager.FrictionlessPermissionedUser userType)
    external
    view
    returns (bytes32);

Parameters

Returns

hasClaim

verify if the userAddress is permissioned in the Frictionless protocol and has a valid claim

function hasClaim(address userAddress, FrictionlessPermissionedUser userType) external view returns (bool);

Parameters

Returns

addUser

Adds a user's OnChainId (Identity) to the Frictionless protocol along with its associated claim data. The Identity is created by invoking the registerIdentity function first.

function addUser(
    address userIdentity,
    FrictionlessPermissionedUser userType,
    bytes memory claimSignature,
    string memory claimURI
) external returns (address);

Parameters

Returns

removeUser

Removes a user from the Frictionless protocol along with its associated claim data.

function removeUser(address userAddress) external returns (bool);

Parameters

Returns

Events

FrictionlessPermissionedUserAdded

Emitted when a user is added to the Frictionless protocol. This event is emitted by the addUser function.

event FrictionlessPermissionedUserAdded(address userIdentity, uint256 userType, string claimURI);

FrictionlessPermissionedUserRegistered

Emitted when a user is registered in the Frictionless protocol. This event is emitted by the registerIdentity function.

event FrictionlessPermissionedUserRegistered(address userAddress, uint16 userISOCountry);

FrictionlessPermissionedUserRemoved

Emitted when a user is removed in the Frictionless protocol. This event is emitted by the removeUser function.

event FrictionlessPermissionedUserRemoved(address userAddress);

Errors

FrictionlessIsZeroAddress

throws if specific address is zero.

error FrictionlessIsZeroAddress(string);

FrictionlessInvalidPermissionForTreasury

throws if treasury tries to add or remove treasury.

error FrictionlessInvalidPermissionForTreasury();

FrictionlessUserIsNotPermssionedInvestor

throws if user is not a permissioned investor

error FrictionlessUserIsNotPermssionedInvestor();

Structs

Claim

the internal struct defining a Claim for a PERMISSIONED_USER in the protocol. Used to submit claims for the OnChainId by the ClaimIssuer.

struct Claim {
    address issuer;
    uint256 topic;
    uint8 scheme;
    address identity;
    bytes signature;
    bytes data;
}

Enums

FrictionlessPermissionedUser

Enum of the Frictionless protocol participants.

enum FrictionlessPermissionedUser {
    PROTOCOL_TREASURY,
    PERMISSIONED_CUSTODIAN,
    PERMISSIONED_INVESTOR,
    PERMISSIONED_MANAGER,
    PERMISSIONED_CALCULATING_AGENT,
    PERMISSIONED_TRANSFER_AGENT,
    PERMISSIONED_FUND_ACCOUNTANT
}

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 following diagram illustrates the design of the fee module, which enables the definition of fees to be automatically collected by a defined fee recipient during any of the value exchange functions in the protocol.

Fees may be configured to be collected in the following transactions:

1. P2P (bi-lateral) transfer of tokens between permissioned counterparties, for example, a direct transfer of securities between two Investors, such as a secondary trade.

2. Exchange of securities, executed by the protocol during a primary issuance, in the form of management fees upon committed capital or deployed capital.

3. Settlement of securities, executed by the protocol or by the Investor.

4. Conversion of an ERC20 token to/from a FrictionlessFundDepositToken, for example, converting USDC to the USD equivalent FrictionlessFundDepositToken or conversion of another ERC20 collateral.

5. FX swap of FrictionlessFundDepositToken of different currencies.

The fee architecture permissions the protocol admin to establish fees, this ensures that the market integrity for fees is maintained, for example, the FX rates are taken from our FX partner's spot and forward rates quoted, and the conversion of ERC20 stablecoins such as USDC and USDT to it's USD equivalent FrictionlessFundDepositToken.

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

Functions

getFeeInfo

get the FeeInfo for a given key.

function getFeeInfo(bytes32 feeKey_) external view returns (FeeInfo memory);

Parameters

Returns

getFeeInBps

get the feeInBps value for a given key

function getFeeInBps(bytes32 tokenFeeKey_) external view returns (uint256);

Parameters

Returns

getFeeRecipient

get the feeRecipientAddr value for a given key

function getFeeRecipient(bytes32 tokenFeeKey_) external view returns (address);

Parameters

Returns

calculateFeeAmount

Calculates the actual fee in absolute terms for a given fee in basis points.

function calculateFeeAmount(uint256 tokensAmount_, uint256 feeInBps_) external pure returns (uint256 feeAmount_);

Parameters

Returns

Events

FrictionlessFeeSet

Event emitted during _setTokenFee

event FrictionlessFeeSet(bytes32 indexed feeKey, FeeInfo feeInfo);

Errors

AbstractFeeModuleInvalidFeeRecipient

error thrown if the recipient is a zero address

error AbstractFeeModuleInvalidFeeRecipient();

AbstractFeeModuleInvalidFee

error thrown if the feesInBps is outside the valid range

error AbstractFeeModuleInvalidFee(uint256 feeInBps);

Structs

FeeInfo

Struct which defines the FeeInfo, representing the fee in basis points and the recipient of the fees on-chain.

struct FeeInfo {
    uint256 feeInBps;
    address feeRecipientAddr;
}

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

Interface defining the upgradeable compliance factory for all tokens in the Frictionless protocol.

Functions

setTreasuryManager

Sets the Treasury Manager to be the specified address.

function setTreasuryManager(address newTreasuryManager_) external;

Parameters

updateModularComplianceImpl

Updates and upgrades the modular compliance implementation

function updateModularComplianceImpl(address newModularComplianceImpl_) external;

Parameters

updateSupportedComplianceData

Updates the set of supported modular compliance modules.

function updateSupportedComplianceData(UpdateSupportedComplianceData[] calldata updateSupportedComplianceDataArr_)
    external;

Parameters

updateModularComplianceData

Updates the modular compliance data.

function updateModularComplianceData(UpdateModularComplianceData[] calldata updateModularComplianceDataArr_) external;

Parameters

deployCompliance

Deploys the compliance contract using the ProxyBeacon with the associated FrictionlessPermissionsManager contract

function deployCompliance(IBasicFrictionlessToken.FrictionlessTokenTypes tokenType_) external returns (address);

Parameters

Returns

treasuryManager

returns the address of the treasuryManager

function treasuryManager() external view returns (address);

Returns

modularComplianceBeacon

returns the ProxyBeacon of the ModularCompliance

function modularComplianceBeacon() external view returns (ProxyBeacon);

Returns

getModularComplianceImpl

returns the address of the ModularCompliance

function getModularComplianceImpl() external view returns (address);

Returns

getModularComplianceTokenType

returns the FrictionlessTokenTypes which is bound by the ModularCompliance

function getModularComplianceTokenType(address modularComplianceAddr_)
    external
    view
    returns (IBasicFrictionlessToken.FrictionlessTokenTypes);

Parameters

Returns

getSupportedComplianceModulesCount

returns the amount of supported compliances ModularCompliance for the specified tokenType_

function getSupportedComplianceModulesCount(IBasicFrictionlessToken.FrictionlessTokenTypes tokenType_)
    external
    view
    returns (uint256);

Parameters

Returns

getSupportedComplianceModules

returns the array of supported compliances ModularCompliance for the specified tokenType_

function getSupportedComplianceModules(IBasicFrictionlessToken.FrictionlessTokenTypes tokenType_)
    external
    view
    returns (address[] memory);

Parameters

Returns

getSupportedComplianceInfo

function getSupportedComplianceInfo(IBasicFrictionlessToken.FrictionlessTokenTypes tokenType_)
    external
    view
    returns (ModularComplianceInfo memory);

isSupportedComplianceModule

returns true if the compliance module supports the Frictionless token type, otherwise false

function isSupportedComplianceModule(IBasicFrictionlessToken.FrictionlessTokenTypes tokenType_, address moduleToCheck_)
    external
    view
    returns (bool);

Parameters

Returns

isModularCompliance

Returns true if the address provided is a ModularCompliance contract

function isModularCompliance(address modularComplianceAddr_) external view returns (bool);

Parameters

Returns

Events

FrictionlessComplianceDeployed

Event emitted upon successful deployment of a compliance contract.

event FrictionlessComplianceDeployed(
    IBasicFrictionlessToken.FrictionlessTokenTypes indexed tokenType, address newComplianceContract
);

Errors

FrictionlessComplianceFactoryZeroAddr

error thrown if the specified contract address is a zero address, during init, setTreasuryManager, and updateModularComplianceImpl

error FrictionlessComplianceFactoryZeroAddr(string);

FrictionlessComplianceFactoryNotATreasuryManager

error thrown if the msg.sender is not the treasury manager during the function deployCompliance

error FrictionlessComplianceFactoryNotATreasuryManager(address);

FrictionlessComplianceFactoryNotAModularCompliance

error thrown if the modular compliance is invlaid for hte token type during the function updateModularCompliancesModules

error FrictionlessComplianceFactoryNotAModularCompliance(address);

FrictionlessComplianceFactoryInvalidTokenType

error thrown if an invalid tokenType is specified during deployCompliance

error FrictionlessComplianceFactoryInvalidTokenType();

FrictionlessComplianceFactoryInvalidModularComplianceData

error thrown if an invalid module is specified during updateModularCompliancesModules

error FrictionlessComplianceFactoryInvalidModularComplianceData(UpdateModularComplianceData modularComplianceData);

Structs

SupportedComplianceData

struct SupportedComplianceData {
    uint256 maxModulesCount;
    EnumerableSet.AddressSet modules;
    bytes32[48] _gap;
}

ModularComplianceInfo

struct ModularComplianceInfo {
    uint256 maxModulesCount;
    address[] modules;
}

UpdateModularComplianceData

Structure to represent the update of modular compliance data.

struct UpdateModularComplianceData {
    address modularCompliance;
    ModularComplianceInfo complianceInfo;
    bool isAdding;
}

UpdateSupportedComplianceData

Structure to represent the update of modular compliance data for a given token type

struct UpdateSupportedComplianceData {
    IBasicFrictionlessToken.FrictionlessTokenTypes tokenType;
    ModularComplianceInfo complianceInfo;
    bool isAdding;
}

Inherits: IModule

Author: DEFYCA Labs S.à.r.l

Copyright © 2023 DEFYCA Labs S.à.r.l Permission is hereby granted, free of charge, to any person obtaining a copy of the Frictionless protocol smart contracts (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL DEFYCA LABS S.à.r.l BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

The IFrictionlessCompliance is responsible for the compliant transfer of the various Tokens in the Frictionless protocol.

Functions

setPermissionsManager

Sets the instance of the IFrictionlessPermissionsManager to determine permissions for users.

function setPermissionsManager(address frictionlessPermissionsManager_) external;

Parameters

setComplianceFactory

Sets the instance of the IFrictionlessComplianceFactory to determine the compliance module for the protocol.

function setComplianceFactory(address newComplianceFactory_) external;

Parameters

permissionsManager

Gets the instance of the IFrictionlessPermissionsManager to determine permissions for users.

function permissionsManager() external view returns (IFrictionlessPermissionsManager);

Returns

complianceFactory

Gets the instance of the IFrictionlessComplianceFactory to determine the compliance module for the protocol.

function complianceFactory() external view returns (IFrictionlessComplianceFactory);

Returns

isTreasury

Verifies if the specified wallet address is a PROTOCOL_TREASURY user.

function isTreasury(address walletAddress_) external view returns (bool);

Parameters

Returns

isCustodian

Verifies if the specified wallet address is a PERMISSIONED_CUSTODIAN user.

function isCustodian(address walletAddress_) external view returns (bool);

Parameters

Returns

isInvestor

Verifies if the specified wallet address is a PERMISSIONED_INVESTOR user.

function isInvestor(address walletAddress_) external view returns (bool);

Parameters

Returns

isManager

Verifies if the specified wallet address is a PERMISSIONED_MANAGER user.

function isManager(address walletAddress_) external view returns (bool);