Approvals for stablecoin issuance

Early access

Stablecoin issuance is in early access. It's a paid module and is available on request. Contact your Account Manager to get access.

If you issue a stablecoin on Layer1, you can require approvals for mints and burns. You can require approval for every order, or set the number of approvals by the amount of a single order: for example, 0 to 10,000 USD needs no approval, 10,000.01 to 1,000,000 USD needs one, and above 1,000,000 USD needs two.

To configure approvals, you must have the approval-settings:operator role. Approvers need the issuance:operator role. See Assign approver roles.

Require approvals for mints and burns

Portal

To require approvals for mints and burns, do the following:

1. In the Layer1 Portal, go to Approvals > Settings, select the Issuance tab, and click Edit.
2. Set the per-transaction rules. Each range has a From value, a To value, and the number of Approvers required. The first range starts at 0, and the ranges must not overlap or leave gaps.
3. Click Save.

API

To require approvals for mints and burns, send a PUT request to /platform/v1/approval-settings/issuance_order:

Request

{
  "approvalThresholds": [
    { "from": 0, "to": 10000, "approvals": 0 },
    { "from": 10000.01, "to": 1000000, "approvals": 1 },
    { "from": 1000000.01, "approvals": 2 }
  ]
}

To require approval for every order, send a single range from 0, for example [{ "from": 0, "approvals": 1 }]. To turn approvals off, send an empty list.

You can also add velocityRules to check the total minted over a rolling time window, for example more than 5,000,000 USD in 24 hours. Velocity rules apply to mints only. They're checked after the mint is approved, and their approvals are in addition to the order approval:

Request

{
  "approvalThresholds": [
    { "from": 0, "to": 10000, "approvals": 0 },
    { "from": 10000.01, "approvals": 1 }
  ],
  "velocityRules": [
    {
      "metric": "VOLUME",
      "window": "PT24H",
      "thresholds": [
        { "from": 0, "to": 5000000, "approvals": 0 },
        { "from": 5000000.01, "approvals": 1 }
      ]
    }
  ]
}

How the rules apply

• The same rules apply to mints and burns, on every network.
• Amounts are in your base currency. Layer1 converts the order amount from the asset that backs your stablecoin.
• If several rules apply, the strictest one wins.
• A mint or burn that needs approval waits in Approvals with the status APPROVAL_REQUESTED. If it isn't approved within one day, it expires, and the order ends as REJECTED.
• You can't approve a mint or burn you created.

In approval requests and the approval webhooks, mints and burns use the policy issuance_order, and the velocity check of a mint uses the policy issuance_order_velocity.

To approve or reject a mint or burn, see Approve or reject a request.