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How Can SFTs Be Used to Represent the Different Tiers of a Tokenized Collateralized Debt Obligation (CDO)?

SFTs use unique Token IDs to represent each risk tranche (Equity, Senior) of a CDO, enabling defined payment waterfalls.
Greeks.Live16.11.25

How Can SFTs Be Used to Represent the Different Tiers of a Tokenized Collateralized Debt Obligation (CDO)?

In a tokenized CDO, SFTs are used to represent the various risk tranches (e.g. Equity, Mezzanine, Senior).

Each tranche is assigned a unique ERC-1155 Token ID. Tokens within the Senior Tranche ID are fungible, but non-fungible with the Mezzanine Tranche ID.

This structure allows the smart contract to define the waterfall payment rules based on the specific Token ID.

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