Smart Contracts Documentation

Even though Liquid’s smart contracts repository is not public yet, we can outline the structure and functionality of the on-chain programs that power Liquid’s tokenization.


Asset Token Contracts (Solana Programs): Each tokenized asset on Liquid is represented by a set of on-chain entities:

  • An SPL Token Mint that represents the asset: This mint is configured according to the asset’s structure:

    • Full Ownership: If the asset will not be fractionalized, the mint may issue a single token (or a fixed small supply) representing the entire asset.

    • Fractional Ownership: The mint’s total supply is set to a large number (e.g., 1,000; 1 million; or 100 million tokens) reflecting divisible shares of the asset. The asset owner usually retains some portion and can distribute or sell the rest.

    • Revenue-Sharing or Debt Representation: The token can represent a claim on cash flows (e.g., rental income, loan interest). In such cases, the token contract might incorporate a mechanism for distributing dividends or interest to token holders, either via an associated on-chain program or off-chain handling recorded on-chain.

    • Time-Locked or Vesting Tokens: Liquid’s contracts support timelocks. Asset owners might lock their own tokens for regulatory lock-up periods or enforce vesting schedules for shareholders, freezing transfers of certain accounts until expiration.


Pre-Audited Contract Templates: Liquid has developed a suite of Solana programs to handle these different token behaviors. These programs:

  • Are pre-audited for security.

  • Are reused across multiple tokenizations with parameters tailored per asset.

  • Include modules like:

    • Transfer restrictions: Ensuring only KYC-approved wallets can hold certain tokens (e.g., through whitelists or verified NFTs like a Civic Pass).

    • Revenue-sharing distributions: Sending SOL or stablecoins periodically to token holders based on their share.

By deploying standardized, audited code for each asset (instead of writing a new contract each time), Liquid guarantees security and consistency, making it easier for developers and institutions to trust asset token contracts.


Metadata and Document Linking: Each asset’s on-chain record includes a pointer to its metadata and legal documentation, stored off-chain. Typically using Solana’s Token Metadata program, Liquid attaches a JSON metadata file to the asset’s mint with fields such as:

  • Name

  • Symbol

  • Description

  • IPFS links to documents (e.g., deed, contracts, appraisals)

  • Regulatory flags

This metadata is either immutable or restricted to updates only by trusted authorities (the issuer or Liquid), ensuring consistency and tamper-proof asset information.

Last updated