Fundraising smart contracts now added to the Swarm Protocol
Swarm Powered Fundraising can now be freely used by issuers of SRC20 security tokens. This creates permissionless core STO infrastructure for anyone to use.
With the Decentralized Finance (DeFi) economy unfolding in front of our eyes, we are seeing old financial products being transformed into trustless and transparent protocols that run without intermediaries.
Long before the term ‘DeFi’ was coined, the Swarm Network rallied around the same values and set out to create open and trustless tools that power the infrastructure designed to foster the emerging digital securities economy.
Along the way, this led us to launch the open Swarm Protocol and the SRC20 security token framework, which gives issuers the ability to operate self-serve asset tokenization. Today we are proud to make a key addition.
Swarm Powered Fundraising (beta) added to the Swarm Protocol
As important as token infrastructure is to run compliant asset tokenization, it is equally essential to interact with investors and capitalize an enterprise.
As of today, Swarm has released the SwarmPoweredFundraise (SPF) smart contracts as a significant addition to the open Swarm Protocol. SPF provides powerful tools to perform regulatory compliant fundraises for security tokens. The only prerequisite is that the token for which the fundraise occurs is operated on the SRC20 standard.
With the SPF the goal was to build it with a high degree of modularity and embedded into the fluidity of the current DeFi markets. Think of it like a module that can be used for each distinct fundraising campaign for a SRC20 token. It therefore matches more the reality in capital markets, where fundraising is not a finite and front-loaded process, but it happen infrequently matching the changes in value creation of the asset. Also, the SPF continuously interacts with price oracles allowing it to stay in tune with current asset values of the contributions.
Key Features
The SwarmPoweredFundraise (SPF) smart contracts empower issuers to:
- Set-up a fundraising campaign with different parameters (soft-cap, hard-cap, time period, base currency)
- Register different currencies to be accepted in the fundraise (on-chain currencies must be on Ethereum; includes methods to insert off-chain contributions such as bitcoin or fiat currencies)
- Configure and manage contributor restrictions that are permitted to participate in the fundraise
- Register and manage affiliates that may be contributing to the fundraise
- Calculate on an ongoing basis the value of contributions based on price oracles
- Get refund options for contributors during the fundraise
- Get issuer security functions to manage the process (e.g. cancel fundraise, return non-accepted contributors)
- Stake-to-mint: close the fundraise with a simple staking of SWM tokens from the same wallet
- And more…
How to get started and contribute
Head over to SwarmNetwork.org — you’ll find there documentation describing the different contracts and the sequence of how to deploy a SPF for your SRC20 token.
Some technical knowledge is required to deploy Ethereum smart contracts. As with all of the Swarm Protocol, this upgrade is also fully open source and permissionless.
Not only can technically savvy users employ these contracts as-is to tokenize any asset and manage tokens using Etherscan’s open Dapp UI, but developers, securities consultants, advisories, service providers, and anyone wanting to build a white-label tokenization solution can build on top of these smart contracts as well.
Community review first — audit to follow
The source code can be reviewed here.
Attention: The current release is a beta release of the smart contracts. They have been tested, but not yet audited. Use at your own discretion and risk.
The current version is released for the Swarm community to test, review and provide feedback. After review (and potential amendment), we will put them through the audit process.
Also, additional pieces have been drafted, but not yet completed. This includes the Issuer Stake Offer Pool (ISOP), which allows the administrator of a fundraise within the stake-to-mint function to draw from a pool of SWM tokens offered in a smart contract. As this has not yet been fully functionally finalized, it would be a good candidate for the community to pick-up and finalize.
The bigger picture
Today marks a major milestone for Swarm. With today’s release, the Swarm Protocol functionally now represents the full current lifecycle of digital securities — from issuance to fundraising to redemption — in a permissionless way.
It’s what the Swarm Network set-out to do from the very beginning and in many ways completes the core functionality that we envisioned.
The broader community of issuers is now equipped with powerful tools to utilize, leverage, iterate on and build the emerging market for digital securities.
We are excited to see what the future holds and the use cases being built on top of the Swarm Protocol. We encourage everyone to come build with us!
