Settlement
Debt instruments cash flows may be settled in a currency different from the denomination.
The D-ASA MUST define either in an on-chain or off-chain settlement asset to regulate the cash flows.
The settlement asset identifier (uint64) MUST be set using the asset_config
method.
If the D-ASA defines a settlement asset different from the denomination asset, then the respective denomination/settlement conversion rate is applied at settlement time.
The denomination/settlement conversion rate can be provided by different oracles, depending on if the denomination/settlement assets are on-chain or off-chain.
If the D-ASA does not define a different settlement asset, then the cash flows MUST be settled in the denomination asset and the settlement asset identifier MUST be equal to the denomination asset identifier.
On-chain settlement
The settlement asset MUST be an Algorand Standard Asset (ASA), an Application asset (App), or the ALGO.
The settlement asset identifier MUST be the ASA ID, the App ID, or 0for
ALGO.
On-chain settlement is possible even if the denomination asset is a traditional off-chain currency.
Off-chain denomination
The settlement asset identifier MUST the ISO 4217 currency numeric code.
The settlement asset MUST use the decimal digits specified by the ISO 4217.
In the case of an off-chain settlement, the D-ASA state machine:
- Regulates payments’ approval conditions (e.g. a coupon is due);
- Notarizes the amounts and timestamps of payments settled off-chain.