Discount bill of exchange BILLEX can be used not only as a means of payment, but also as a way of generating income. BILLEX is a convenient tool for investing idle CENTUS, DBC or any other cryptoassets. It combines profitability and ability of using for settlements with contracting parties at its nominal (not purchase) value or as collateral.
In other words, BILLEX is money which is produced by participant (issuer) themselves at a discount to their nominal value against the security of their cryptoassets. A difference between BILLEX issuing cost and its nominal value represents a BILLEX issuer’s income (seigniorage).
BILLEX issuer is also a creditor. Any interested party (including the creditor themselves) may be a holder. The bill of exchange is paid by BILLEX Discount Payment Network smart contract which serves as a holder of the creditor assets.
There are interest-bearing and discount bills of exchange. An interest-bearing bill of exchange is a security containing a debtor unconditional obligation to pay the bill of exchange nominal value, plus interest, to a bearer of this bill of exchange on conditions specified in it.
The BILLEX discount bill of exchange is a security which is issued at a price below its nominal value and repaid at par. That is, BILLEX is issued at a discount to its nominal value, and a difference between BILLEX sell price and its nominal value represents a BILLEX issuer’s income (seigniorage).
BILLEX bill of exchange circulation scheme
The smart contract conducts an open auction for the issue of BILLEX discount bills of exchange among any interested participants, which specify BILLEX face value, volume of issue, maturity and other important conditions. The sell price (clearing price) is set based on the results of the auction.
1. The participant willing to issue BILLEX sends a certain amount of CENTUS to the smart contract address to ensure BILLEX issue at a price less than its nominal value of 1 CENTUS.
2. Once the smart contract receives CENTUS, it sends BILLEX denominated in 1 CENTUS to the participant. They may hold it to receive an income or use it to make payments with contracting parties.
3. BILLEX holders use it as a means of payment at nominal, and not at discount issue price.
4. BILLEX can change several holders, the last of which presents it to the smart contract for payment.
5. The smart contract repays BILLEX at its nominal value of 1 CENTUS.
How to calculate BILLEX nominal value, sell price and discount
BILLEX Nominal Value = BILLEX sell price * (1 + (BILLEX term * rate of interest / 365 * 100))
BILLEX Sell Price = BILLEX Nominal Value * (1 — (BILLEX term* rate of interest / 365 * 100))
Discount = (BILLEX Price * rate of interest * BILLEX term)/365 * 100
You can see an example of BILLEX discount calculation in this article.
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