Auction Type Resolution on Smart Derivatives


This paper proposes an auction type resolution for smart derivatives. It has been discussed to migrate derivatives contracts to smart contracts (smart derivatives). Automation is often discussed in this context. It is also important to prepare to avoid disputes from practical perspectives. There are controversial issues to terminate the relationship at defaults. In OTC derivative markets, master agreements define a basic policy for the liquidation process but there happened some disputes over these processes. We propose to define an auction type resolution in smart derivatives, which each participant would find beneficial.

Shin'ichiro Matsuo
Shin'ichiro Matsuo
Research Professor of Computer Science

Cryptographer, and the acting co-chair of Blockchain Governance Initiative Network (BGIN).