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What is a token transfer transaction?

A token transfer transaction moves ERC-20 tokens from one account to another. This guide uses an ERC-20 transfer (USDC) as a reference example. Replace the token, decimals, and amount for your asset.

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1) Set up the client and signer

Create the SDK client and signer used for approvals. 
import { DenClient } from "@onchainden/mls-sdk-ts";
import { privateKeyToAccount } from "viem/accounts";
import { encodeAbiParameters, encodeFunctionData, type Hex } from "viem";

const signer = privateKeyToAccount("0xYOUR_PRIVATE_KEY");

const client = new DenClient({
  apiKey: process.env.DEN_API_KEY!,
  baseUrl: process.env.DEN_API_BASE_URL!,
});

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2) Build the transfer data

Encode the ERC-20 transfer call data for the token transfer. 
const erc20TransferAbi = [
  {
    name: "transfer",
    type: "function",
    stateMutability: "nonpayable",
    inputs: [
      { name: "to", type: "address" },
      { name: "amount", type: "uint256" },
    ],
    outputs: [{ name: "success", type: "bool" }],
  },
];

const callData = encodeFunctionData({
  abi: erc20TransferAbi,
  functionName: "transfer",
  args: ["0xRecipient...", 250_000_000n],
});

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3) Create the transaction

Create a transaction proposal using the encoded transfer data. 
const { data: queued } = await client.createTransaction({
  accountId: "acc_123",
  initiatorWalletAddress: signer.address,
  networkId: 1,
  policyId: "pol_123",
  description: "USDC payout",
  to: "0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48",
  value: "0",
  data: callData,
});

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4) Sign and execute

Sign the initiator payload hash, submit the encoded signature, then execute once approvals are ready. 
const initiatorSig = encodeAbiParameters(
  [
    { type: "address", name: "address" },
    { type: "bytes", name: "signature" },
  ],
  [
    signer.address,
    await signer.sign({
      hash: queued.signatureData.initiatorPayload as Hex,
    }),
  ]
);

const { data: afterInitiator } = await client.signTransaction(queued.id, {
  type: "initiator",
  signature: initiatorSig,
});

if (afterInitiator.signatureData.status === "approvalReady") {
  await client.executeTransaction(queued.id, { type: "approve" });
}

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Full example

import { DenClient } from "@onchainden/mls-sdk-ts";
import { privateKeyToAccount } from "viem/accounts";
import { encodeFunctionData } from "viem";

// 1) Set up the client and signer.
const signer = privateKeyToAccount("0xYOUR_PRIVATE_KEY");

const client = new DenClient({
  apiKey: process.env.DEN_API_KEY!,
  baseUrl: process.env.DEN_API_BASE_URL!,
});

// 2) Build the transfer data.
const erc20TransferAbi = [
  {
    name: "transfer",
    type: "function",
    stateMutability: "nonpayable",
    inputs: [
      { name: "to", type: "address" },
      { name: "amount", type: "uint256" },
    ],
    outputs: [{ name: "success", type: "bool" }],
  },
];

const callData = encodeFunctionData({
  abi: erc20TransferAbi,
  functionName: "transfer",
  args: ["0xRecipient...", 250_000_000n],
});

// 3) Create the transaction.
const { data: queued } = await client.createTransaction({
  accountId: "acc_123",
  initiatorWalletAddress: signer.address,
  networkId: 1,
  policyId: "pol_123",
  description: "USDC payout",
  to: "0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48",
  value: "0",
  data: callData,
});

// 4) Sign and execute.
const initiatorSig = encodeAbiParameters(
  [
    { type: "address", name: "address" },
    { type: "bytes", name: "signature" },
  ],
  [
    signer.address,
    await signer.sign({
      hash: queued.signatureData.initiatorPayload as Hex,
    }),
  ]
);

const { data: afterInitiator } = await client.signTransaction(queued.id, {
  type: "initiator",
  signature: initiatorSig,
});

if (afterInitiator.signatureData.status === "approvalReady") {
  await client.executeTransaction(queued.id, { type: "approve" });
}