This standard introduces a standardized framework for on-chain interest rate swaps. The proposed standard facilitates the seamless exchange of fixed and floating interest rate cash flows between parties, providing a robust foundation for decentralized finance (DeFi) applications.
pragma solidity ^0.8.0;
/**
* @title ERC-7586 Interest Rate Swaps
*/
interface IERC7586 {
// events
/**
* @notice MUST be emitted when interest rates are swapped
* @param _amount the interest difference to be transferred
* @param _account the recipient account to send the interest difference to. MUST be either the `payer` or the `receiver`
*/
event Swap(uint256 _amount, address _account);
/**
* @notice MUST be emitted when the swap contract is terminated
* @param _payer the swap payer
* @param _receiver the swap receiver
*/
event TerminateSwap(address indexed _payer, address indexed _receiver);
// functions
/**
* @notice Returns the IRS payer account address. The party who aggreed to pay fixed interest
*/
function payer() external view returns(address);
/**
* @notice Returns the IRS receiver account address. The party who aggreed to pay floating interest
*/
function receiver() external view returns(address);
/**
* @notice Returns the fixed interest rate. It is RECOMMENDED to express the swap rate in basis point unit
* 1 basis point = 0.01% = 0.0001
* ex: if interest rate = 2.5%, then swapRate() => 250 basis points
*/
function swapRate() external view returns(uint256);
/**
* @notice Returns the floating rate spread, i.e. the fixed part of the floating interest rate. It is RECOMMENDED to express the spread in basis point unit
* 1 basis point = 0.01% = 0.0001
* ex: if spread = 0.5%, then floatingRateSpread() => 50 basis points
*
* floatingRate = benchmark + spread
*/
function spread() external view returns(uint256);
/**
* @notice Returns the contract address of the asset to be transferred when swapping IRS. Depending on what the two parties aggreed upon, this could be a currency, etc.
* Example: If the two parties agreed to swap interest rates in USDC, then this function should return the USDC contract address.
* This address SHOULD be used in the `swap` function to transfer the interest difference to either the `payer` or the `receiver`. Example: IERC(assetContract).transfer
*/
function assetContract() external view returns(address);
/**
* @notice Returns the notional amount in unit of asset to be transferred when swapping IRS. This amount serves as the basis for calculating the interest payments, and may not be exchanged
* Example: If the two parties aggreed to swap interest rates in USDC, then the notional amount may be equal to 1,000,000 USDC, etc
*/
function notionalAmount() external view returns(uint256);
/**
* @notice Returns the interest payment frequency
*/
function paymentFrequency() external view returns(uint256);
/**
* @notice Returns an array of specific dates on which the interest payments are exchanged. Each date MUST be a Unix timestamp like the one returned by block.timestamp
* The length of the array returned by this function MUST equal the total number of swaps that should be realized
*
* OPTIONAL
*/
function paymentDates() external view returns(uint256[] memory);
/**
* @notice Returns the starting date of the swap contract. This is a Unix Timestamp like the one returned by block.timestamp
*/
function startingDate() external view returns(uint256);
/**
* @notice Returns the maturity date of the swap contract. This is a Unix Timestamp like the one returned by block.timestamp
*/
function maturityDate() external view returns(uint256);
/**
* @notice Returns the benchmark in basis point unit
* Example: value of one the following rates: CF BIRC, EURIBOR, HIBOR, SHIBOR, SOFR, SONIA, TONA, etc.
*/
function benchmark() external view returns(uint256);
/**
* @notice Returns the oracle contract address for the benchmark rate.
* This contract SHOULD be used to fetch real time benchmark rate
* Example: Contract address for `CF BIRC`
*
* OPTIONAL. The two parties MAY agree to set the benchmark manually
*/
function oracleContractForBenchmark() external view returns(address);
/**
* @notice Returns true if the swap is active (not matured or not terminated), false otherwise
*/
function isActive() external view returns(bool);
/**
* @notice Gives agreement to swap IRS. After the contract deployment and prior to the initiation of the first payment, it is imperative for both the `payer` and the `receiver` to invoke this function as an expression of their agreement
*/
function agree() external;
/**
* @notice Makes swap calculation and transfers the interest difference to either the `payer` or the `receiver`
*/
function swap() external returns(bool);
/**
* @notice Terminates the swap contract before its maturity date. It is RECOMMENDED to integrate a multisig process to terminate the swap contract.
* Both the payer and the receiver MUST sign for the termination to be successful
*/
function terminateSwap() external;
}
