On-Ledger Architecture
Every material event in the DFMREIT lifecycle is recorded as an on-ledger transaction governed by DAML contracts on Canton Network.
What lives on-ledger
Token issuance (subscription)
New DFMREIT holding recorded deterministically at the moment of issuance
Token transfer
Ownership state updated; whitelist and transfer restriction checks enforced by the contract
AMM swap
Every buy and sell through the pool recorded — price, quantity, and LP fee distribution
LP deposit
LP token issuance and pool share recorded
LP withdrawal
LP token burn, pool share reduction, and fee distribution recorded
Token redemption
DFMREIT burn and CC/USDC release recorded atomically
DAML contracts
Fractit uses DAML contracts to govern every lifecycle stage. A DAML contract is not just a state record — it is a formal specification of who has rights to do what, under which conditions, and what happens when those rights are exercised.
For DFMREIT, the key contracts govern:
Issuance rights — which entities may mint new DFMREIT tokens and under what conditions
Transfer restrictions — whitelist validation enforced on every transfer, regardless of the interface used
Redemption obligations — the protocol's obligation to redeem tokens for CC/USDC during open windows
LP pool state — the invariant relationship between pool assets and LP share tokens
Whitelist enforcement
The Canton compliance module enforces whitelist checks at the contract layer. This means:
A DFMREIT token cannot be transferred to a non-whitelisted wallet under any circumstances
Jurisdiction-restricted wallets are blocked from receiving tokens even if they were previously whitelisted
Compliance status is checked on every transfer — not cached from a previous check
This enforcement is independent of the Fractit application UI. It is not possible to bypass it by interacting with the contract directly.
Settlement currencies
Fractit supports two settlement currencies:
CC (Canton Coin)
Canton-native asset
Subscriptions, redemptions, AMM trades
USDC
Stablecoin on Canton
Subscriptions, redemptions, AMM trades
Both currencies settle on Canton Network with the same sub-second finality and deterministic guarantees. Supporting CC enables Fractit products to participate directly in Canton-native market activity and composability with other Canton applications.
Auditability
Every mint, swap, transfer, and redemption is recorded immutably on Canton and mirrored to an institutional ledger. This creates a complete, verifiable audit trail that is independent of Fractit's application servers. Token holders, auditors, and regulators can verify the full history of any token or position from the ledger record alone.
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