Agenda

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What is Lykke?

Vision

Three fundamental components

High-level architecture

Issuance

Example

Digital asset is issued on the blockchain as Colored Coin (API/Web)

https://www.coinprism.info/asset/AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvMhttps://www.coinprism.info/asset/AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvMhttps://www.coinprism.info/asset/AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvM

Issuance Metadata defined in the JSON file protected by SSL certificate

Lykke Corp JSON example https://lykke.com/asset/LKK

{

"asset_ids": [ "AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvM" ],

"contract_url": "https://lykke.com/Lykke_Corp_Placement_Memorandum.pdf",

"name_short": "Lykke",

"name": "Lykke Corp Equity",

"issuer": "Lykke Corp",

"description": "Lykke Corp is Swiss registered company that is crowd based at all levels. Lykke

shares are issued in the form of Colored Coins. Lykke builds a global marketplace for all asset

classes and financial instruments. Our marketplace will use the distributed ledger technology

pioneered by Bitcoin to offer immediate settlement and direct ownership.",

"description_mime": "text/x-markdown; charset=UTF-8",

"type": "Stock",

"divisibility": 6,

"link_to_website": true,

"icon_url": "https://www.lykke.com/img/coins/lykke-48.png",

"image_url": "https://www.lykke.com/img/coins/lykke-260.png",

"version": "1.0"

}

https://lykke.com/asset/LKKhttps://lykke.com/asset/LKK

Memorandum Placement memorandum (Prospectus, Terms & Conditions)

Lykke Corp example https://lykke.com/Lykke_Corp_Placement_Memorandum.pdf

https://lykke.com/Lykke_Corp_Placement_Memorandum.pdf

Real-time ownership structure

Ownership is automatically updated after confirmation of each transaction e.g. Lykke ownership https://www.coinprism.info/asset/AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvM/owners

https://www.coinprism.info/asset/AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvM/ownershttps://www.coinprism.info/asset/AXkedGbAH1XGDpAypVzA5eyjegX4FaCnvM/owners

Dividends distribution

Dividends can be broadcasted in bitcoins or fiat colored coins (EUR, CHF, etc.)

Lykke Wallet

https://itunes.apple.com/tt/app/lykke-wallet/id1112839581?mt=8https://play.google.com/store/apps/details?id=com.lykkex.LykkeWallet

Multisignature wallets are used to deposit client’s coins. The exchange does not take possession of the traded coins.

2-of-2 Multisig address requires two signature to spend coins from it:

• Client’s signature

• Exchange signature

Exchange 2-of -2 Multisig wallet Client + Exchange

Client

MultiSig wallets

MultiSig wallets advantages

MultiSig wallet provides the following advantages:

• Coins flow control – Exchange signature required for each transaction

• Client identification (KYC) – registered clients only are allowed to trade

• Coins safety – even if exchange is compromised clients will not lose their coins

MultiSig wallets refunds

To guarantee funds recovery from the MultiSig wallet Exchange provides offchain «refund transaction»

Exchange 2-of -2 Multisig wallet Client + Exchange

Client

Refund Offchain transaction

nLockTime=31d

Refund transaction can be broadcasted after 31 days

DVP atomic transactions are used to swap assets between peers

Alice’s wallet Bob’s wallet

USD EUR

USD EUR

There are two signatures are required to broadcast the atomic swap transaction on the bitcoin blockchain

Atomic swap transaction

Colored Coins Settlement

Guaranteed delivery-vs-payment transactions

Transactions are settled as atomic swaps on bitcoin blockchain. Settlement risk is zero. Cost is zero too. See LykkeX transaction log https://www.coinprism.info/address/anJBX5sKFK4vnbywKWE2NQa9xrvLJEqRAB2

https://www.coinprism.info/address/anJBX5sKFK4vnbywKWE2NQa9xrvLJEqRAB2

Trading stat

Trading stat

Trading stat

22.5 min 2.5 hours 12 hours

Outlook

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Conclusion