[Grant Application]: Interest Rate Swaps (IRS)

[Edoumou]

Project title

Interest Rate Swaps

Link to grant specification

DEX

Time to complete the project

8 to 10 weeks

Do you agree to open source all work you do for this project under the APACHE2 license?

• I agree to open source all work I do for this project under the APACHE2 license.

Project description

Real World Assets (RWAs) Tokenization is making a transformative shift in the world of Finance by leveraging blockchain technology. One of the RWAs tokenization application is the tokenization of financial obligations issued by governments or corporations to investors.

Interest Rate Swapping (IRS) denotes a derivative contract wherein two parties mutually consent to exchange a series of forthcoming interest payments based on a specified notional amount. This financial instrument serves as a strategic tool for hedging against interest rate fluctuations. The mechanism entails the utilization of a benchmark index to facilitate the exchange between a variable interest rate and a fixed rate.

The goal of this project is to show the full process of IRS between two entities that have issued obligations and that wish to hedge against interest rate fluctuations.

Milestones

Milestone No.	Milestone Summary	Estimated Timeframe
1	Project Setup, choice of framework (hardhat probably), start modelling Interest Rate Swaps. Implement the ERC-7586, the standard interface for IRS, IRS token issuance.	1 weeks
2	Choice of two IRS counterparties, bond issuance for the two counterparties, IRS smart contract that implements the logic for IRS swapping. Deployment, Unit tests	8 - 10 weeks
3	Example milestone	Y weeks
4	Example milestone	Y weeks

Documentation, education and community

• A document that explains what are Interest Rate Swaps, and how they are used in C
• A document that explains how the project can be tested.

Other deliverables

Other deliverable like video link may be proposed

Maintenance and upgrade plans

In this project I will be working on IRS, which is one of the product we are working on at SecurTok. Any update that will be made on SecurTok side will also be made to this project.