🔢UTXO Accounts

Unlike blockchains using an Account-based ledger model, token balances on Cardano consist of one or more discrete outputs (UTXOs) that are available to be used in future transactions. Each UTXO is indivisible, meaning it can either be spent in its entirety or split into smaller UTXOs through new transactions. A common requirement for existing Cardano dApps is that participants need to lock the exact amount of a token required for a certain smart contract interaction (such as creating a limit order or making an offer to purchase an NFT). A useful feature built into the Pond Smart Account is the ability to treat all token balances as accounts. This allows expressing any DeFi intents as if the blockchain were using an Account-based ledger. On intent resolution, only the required number of tokens may be unlocked, allowing for partial orders to be filled across any number of different protocols.