A dShare is a token 1:1 backed by a security, commonly equity.

How is it backed?

To ensure a true 1:1 backing, a mint (aka issuance) or a burn (aka redemption) only occurs when a corresponding order is complete on a brokerage account:

sequenceDiagram
	actor A as Customer
	participant B as Blockchain
	participant C as Dinari
	participant D as Alpaca
	Note over A,D: Issuance
	A ->> B: Escrow funds and submit order
	B ->> C: Forward order
	C ->> D: Submit order
	D ->> D: Fill order
	D ->> C: Notify completion
	C ->> B: Fill order
	B ->> A: Mint dShares
	Note over A,D: Redemption
	A ->> B: Escrow dShares and submit order
	B ->> C: Forward order
	C ->> D: Submit order
	D ->> D: Fill order
	D ->> C: Notify completion
	C ->> B: Fill order
	B ->> B: Burn dShares
	B ->> A: Transfer funds