OpenFinance Network — Smart Securities Standard (S3) Contract

Juan M. Hernandez
Mar 12, 2018 · 3 min read

The OpenFinance Network was created as a response to a fragmented alternative asset market, in which the lack of standardization and interoperability create a burdensome environment for issuers and investors alike. By creating a uniform protocol across the market, we are able to bring down clearing and settlement friction to a matter of seconds. It is with this intent that we are proud to announce our own security token contract, the Smart Securities Standard (S3) to the market.

When issuing new securities or tokenizing existing assets, the OpenFinance Network S3 token contract library allows for companies to issue security tokens in a compliant and streamlined fashion.

Smart Securities Standard (S3)

You can find the full S3 specifications on the OpenFinance Network Github page.

This library contains a series of modular contracts, meant to build off of each other, and fit the needs of specific regulation. You will find all the requirements of a compliant transfer, AML/KYC, investor accreditation, and bad actor checks. Our library will encompass all offerings of registered & restricted securities, including Regulation D, Reg S, Reg A+, & Reg CF. These offerings will allow an issuer to easily and compliantly create a security token capable of utilizing the full benefit of the OFN ecosystem.

Functionality

TransferRestrictor.sol — an interface for restricting ERC20 transfers. Contains a function .test that checks address to, address from, amount, and token address.

RestrictedToken.sol — The basis of the Security token standard. This is the first line in the extension of the StandardToken.sol (ERC20) Open Zeppelin contract. It adds flexible rule checking. RestrictedToken is passed a restrictor address, which is then used to test against msg.sender, to, value, and the token (this). From there, restricted transfers can occur, or delegated resticted transfers. (transfer && transferFrom)

RuleSet.sol — an interface for setting rules. This attaches addresses and integers to be applied to different token structures.

UserChecker.sol — Interface that confirms user address and returns a bool

SimpleUserChecker.sol — is an extension of Ownable and UserChecker. Used to confirm entities via checkers, or registered address allowed to approve said enitity identities. Add, remove, and confirm Users.

RegD506c.sol — An implementation of the restrictions set forth via regulation D exemption 506(c). Inherits Transfer Restrictor. This contracts begins the holding period of the token, registers AML/KYC, investor accreditation, and bad actor checks.

RegD506cToken.sol — Returns a bool determining if the token represents the a fund, which hold different shareholder limits.

RegDFund.sol — Incorporates the rules set for the Reg D fund token transfer. Imports Rule set, and applies the transfer.

TheRegD506c.sol — Holds tables for all AML-KYC, accredited investors, and Issuance dates for the securities. Enforces All applied Rules, checks AML-KYC status with the registered checker, confirms accredited investor status with the associated checker.

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Juan M. Hernandez is the Founder and CEO of OpenFinance Network, the trading platform for security tokens and other alternative assets. Juan is a serial entrepreneur, technologist, and polymath experienced in financial markets, exchanges, and blockchain technology. He holds a CS degree from Northwestern University and an MBA from the Kellogg Graduate School of Management.

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Openfinance

The next evolution of alternative assets. Openfinance is the first U.S.-regulated platform for the secondary market trading of digital alternative assets.

Written by

Juan M. Hernandez is the Founder and CEO of OpenFinance Network, the trading platform for security tokens and other alternative assets.

The next evolution of alternative assets. Openfinance is the first U.S.-regulated platform for the secondary market trading of digital alternative assets.

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