Systems and Methods for Tokenized Control of Smart Contracts

Abstract

Methods and systems for automatically conducting a continuous forward rate agreement in a cryptocurrency using smart contracts. An obligation object is generated and provided with control of a first smart contract, which may be a collateralized debt position smart contract, and control of a lender amount. The obligation object is executed to update balances for first and second parties until the obligation object is liquidated or terminated. Additional parties may be introduced. Upon liquidation or termination, the obligation object accounts to each of the parties based on their balances, and based on tokens generated to track positions in the obligation object.

1 . A method for automatically conducting a continuous forward rate agreement in a cryptocurrency using smart contracts, the method comprising:
 identifying a first smart contract, the first smart contract having a first address and a first borrower address associated therewith, the first smart contract having (i) a owed amount value initially based on an amount of cryptocurrency transferred to the first borrower address, (ii) a collateral value representing a value of a collateral object committed to the smart contract associated with the first borrower address, (iii) an interest rate query routine configured to periodically determine a first variable interest rate based at least on an extrinsic rate or an intrinsic rate;   identifying at least one loan token associated with the first smart contract, the at least one loan token representing an interest in the collateral object;   identifying a second smart contract, the second smart contract having a second address and a first lender address associated therewith, the second smart contract having (i) a lender balance representing a lender amount of cryptocurrency associated with the first lender address, and (ii) a second interest rate query routine configured to periodically determine a second variable interest rate based at least on the extrinsic rate or the intrinsic rate;   generating an obligation object, wherein generating the obligation object comprises:   receiving control of the at least one loan token;   generating a borrower balance of the obligation object based on the collateral value associated with the at least one loan token;   receiving control of the lender amount;   generating at least one lender token and at least one borrower token;   associating the at least one lender token with the first lender address;   associating the at least one borrower token with the first borrower address; and   determining a predetermined interest rate associated with the obligation object; and   executing the obligation object, wherein executing the obligation object comprises:   receiving at least one first payment from the first borrower address;   receiving at least one second payment from the first lender address;   updating the borrower balance based on the at least one first payment and the at least one second payment;   detecting a triggering event; and   in response to detection of the triggering event:
 i) computing a lender return amount based on the lender balance and the at least one first payment; 
 ii) computing a borrower return amount based on the borrower balance and the at least one first payment; and 
 iii) releasing a cryptocurrency based on the lender return amount and the borrower return amount. 
   
     
     
         2 . The method of  claim 1 , wherein the at least one lender token comprises a plurality of lender tokens. 
     
     
         3 . The method of  claim 2 , wherein a subset of the plurality of lender tokens is associated with a second lender address, and wherein the lender amount is re-allocated between the first lender address and the second lender address according to a proportion of the plurality of lender tokens associated with the first and second lender addresses, respectively. 
     
     
         4 . The method of  claim 3 , further comprising:
 de-associating the at least one lender token from the first lender address;   transferring a subset of the loan amount to the first lender; and   receiving a secondary loan amount to replace the subset of the loan amount, from the second lender.   
     
     
         5 . The method of  claim 1 , wherein the at least one borrower token comprises a plurality of borrower tokens. 
     
     
         6 . The method of  claim 5 , wherein a subset of the plurality of borrower tokens is associated with a second borrower address, and wherein the borrower balance is reallocated between the first borrower address and the second borrower address according to a proportion of the plurality of borrower tokens associated with the first and second borrower addresses, respectively. 
     
     
         7 . The method of  claim 6 , further comprising de-associating the at least one borrower token from the first borrower address. 
     
     
         8 . The method of  claim 1 , wherein generating the obligation object further comprises querying an external server or smart contract to determine the predetermined interest rate. 
     
     
         9 . The method of  claim 1 , wherein the predetermined interest rate is fixed. 
     
     
         10 . The method of  claim 1 , wherein executing the obligation object further comprises:
 determining that the extrinsic rate has decreased relative to the predetermined interest rate; and   increasing a proportion of the loan amount to be allocated to the lender address, based on the difference between the extrinsic rate and the predetermined interest rate.   
     
     
         11 . The method of  claim 10 , wherein increasing the proportion of the loan amount to be allocated to the lender address further comprises:
 computing the proportion of the loan amount;   invoking a partial liquidation function of the obligation object; and   receiving the proportion of the loan amount in an escrow account.   
     
     
         12 . The method of  claim 1 , wherein executing the obligation object further comprises:
 determining that the extrinsic rate has increased relative to the predetermined interest rate; and   increasing a proportion of the loan amount to be allocated to the borrower address, based on the difference between the extrinsic rate and the predetermined interest rate.   
     
     
         13 . The method of  claim 12 , wherein receiving control of the lender amount comprises the obligation object receiving control of the lender amount, the method further comprising transferring a portion of the lender amount to the first smart contract to reduce the owed amount value. 
     
     
         14 . The method of  claim 1 , wherein detecting the triggering event comprises detecting that the collateral value is lower than the loan amount presently allocated to the lender. 
     
     
         15 . The method of  claim 1 , wherein detecting the triggering event comprises detecting that a term of the obligation object has elapsed. 
     
     
         16 . The method of  claim 1 , wherein the first payment is at least one borrower interest payment based on the first variable interest rate. 
     
     
         17 . The method of  claim 1 , wherein the second payment is at least one lender interest payment based on the second variable interest rate. 
     
     
         18 . The method of  claim 1 , wherein the obligation object is a smart contract. 
     
     
         19 . The method of  claim 1 , wherein the at least one first payment comprises a plurality of payments, and wherein the monitoring the at least one first payment comprises periodically monitoring the plurality of payments. 
     
     
         20 . The method of  claim 1 , wherein the cryptocurrency is based on a form of Dai. 
     
     
         21 . The method of  claim 20 , wherein the extrinsic rate is a Dai Savings Rate. 
     
     
         22 . The method of  claim 20 , wherein the extrinsic rate is based on a dividend rate. 
     
     
         23 . A method for automatically conducting a continuous forward rate agreement in a cryptocurrency using smart contracts, the method comprising:
 generating an obligation object, the obligation object having a first address and a first borrower address associated therewith, the obligation object having (i) an owed amount value initially based on an amount of cryptocurrency transferred to the first borrower address, (ii) a collateral value representing a value of a collateral object committed to the obligation object by the first borrower address, (iii) an interest rate query routine configured to periodically determine a first variable interest rate based at least on an extrinsic rate or an intrinsic rate, the obligation object further having a first lender address associated therewith, and (i) a lender balance representing a lender amount of cryptocurrency associated with the first lender address, wherein generating the obligation object further comprises:
 generating a borrower balance of the obligation object based on the collateral value associated with the at least one loan token; 
 generating the lender balance of the obligation object based on the lender amount; 
 generating at least one lender token and at least one borrower token; 
 associating the at least one lender token with the first lender address; 
 associating the at least one borrower token with the first borrower address; and 
 determining a predetermined interest rate associated with the obligation object; and 
 executing the obligation object, wherein executing the obligation object comprises: 
 receiving at least one first payment from the first borrower address; 
 receiving at least one second payment from the first lender address; 
 updating the borrower balance based on the at least one first payment and the at least one second payment; 
 detecting a triggering event; and 
 in response to detection of the triggering event:
 i) computing a lender return amount based on the lender balance and the at least one first payment; 
 ii) computing a borrower return amount based on the borrower balance and the at least one first payment; and 
 iii) releasing a cryptocurrency based on the lender return amount and the borrower return amount. 
 
   
     
     
         24 . A non-transitory computer readable medium storing computer program code executable by a processor, which when executed by the processor causes the processor to carry out the method according to  claim 1 .