Delivery-vs-Payment (DvP)

Delivery-vs-Payment (DvP) can be used to exchange D-ASA units both on the primary market (placement) and secondary market (e.g., OTC trades).

The D-ASA framework supports the execution of composable DvP transactions.

The D-ASA DvP transactions are native Algorand Group transactions.

The Algorand Group transactions ensure atomicity, they are executed on an “all-or-nothing” basis, meaning that either all transactions in the group are executed or none of them are.

Therefore, D-ASA DvP ensures no counterparty risk, as the transfer of D-ASA units and the corresponding payment occur simultaneously. If either the transfer or the payment fails, the entire transaction group is rejected, preventing any party from being left in a vulnerable position.

The simplest DvP consists of:

• A delivery-leg, executed by the D-ASA Transfer Agent;
• A payment-leg, executed as a general Algorand transaction (usually an ASA transfer).

The payment is not restricted to specific assets (e.g., not restricted to the denomination or settlement assets).

The amounts of the DvP are negotiated between the two parties.