Token Tool by Bitbond

Automate Payments – Create DvP Settlement on Avalanche

Transfer tokens with DvP settlement
No smart contract programming required
Atomic swap for tokens
Remove counter-party risk from settlement
Set custom price and payment token
DvP settlement product documentation
You have to Connect Wallet before creating a new payment

Avalanche DvP Settlement for tokens FAQ

The DvP (Delivery versus Payment) settlement feature on Token Tool is a mechanism that ensures the simultaneous exchange of assets and payment. This feature guarantees that the transfer of a tokenized asset and the corresponding payment occur at the same time, minimizing the risk for both parties involved in the transaction.
DvP works by linking the delivery of an asset to the payment for that asset in a single, atomic transaction (aka atomic swap). In the Avalanche network context, smart contracts are used to enforce the simultaneous exchange. If either the asset or the payment is not available, the transaction is automatically canceled, ensuring that neither party is exposed to risk.
The DvP settlement reduces risk by ensuring that both the asset and the payment are transferred simultaneously. This eliminates the possibility of one party failing to deliver on their end of the deal, thereby protecting buyers from not receiving their purchased assets and sellers from not receiving their payment.

Using the Token Tool DvP feature provides several benefits:

Security: Reduces counterparty risk by ensuring simultaneous exchange.
Efficiency: Streamlines transactions with automated, secure smart contracts.
Trust: Enhances trust between parties by guaranteeing delivery and payment.
Transparency: Provides clear and immutable transaction records on the Avalanche blockchain.
The DvP settlement feature is designed to support a wide range of ARC-20 tokens on the Avalanche network. However, it's important to verify compatibility for specific tokens before initiating a DvP transaction.
Token Tool ensures the security of DvP transactions through the use of Avalanche smart contracts. These contracts are audited and follow best practices to ensure they execute securely and correctly. Additionally, all transactions are recorded on the blockchain, providing a transparent and immutable record of exchanges.
Yes, there is typically a fee associated with using the DvP settlement feature on Token Tool. This fee consists of a service fee paid to Token Tool, as well as network fees that cover the cost of deploying the smart contract on the Avalanche network.
DvP differs from other transaction methods by ensuring that both asset delivery and payment occur simultaneously in a single, atomic transaction. Other methods might involve separate transactions for asset transfer and payment, which can introduce risks such as non-delivery or non-payment.
The settlement time for DvP transactions on Token Tool primarily depends on the Avalanche network's current congestion and gas fees. Typically, transactions are settled within minutes, but it can vary based on network conditions.

While the DvP function is designed to minimize risks, there is always a potential for transaction failure due to network issues, insufficient gas fees, or incompatible tokens. However, in the event of a failure, no assets or payments are exchanged, ensuring that neither party is at a loss.

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