Stonks Protocol
A meme-token launchpad on Solana with tokenized US equities as the bonding-curve reserve. This document explains how the protocol works and what powers the reserves.
Overview
Each Stonk is a meme token whose bonding-curve reserve is a tokenized US equity. The reserve gives the curve a real-world denomination: rather than measuring price in SOL, you trade against an asset that already has external utility and recognised market value.
All curve activity, graduation, and post-graduation liquidity are fully on-chain on Solana. Stonks is the launchpad and consumes the reserve assets as a counterparty — it does not issue, hold, or custody the equities themselves.
How a Stonk works
- Pick a reserve. Choose one of five tokenized equities. The selection sets your token's denomination and narrative.
- Launch. Provide a name, ticker, image, and optional socials. Optionally include a first buy in the same transaction.
- Trade on the curve. Buy and sell against an on-chain bonding curve with deterministic pricing. No order book, no off-chain matching.
- Graduate. When the reserve held by the curve reaches the graduation threshold, liquidity migrates to a permissionless AMM pool and trading continues there.
About xStocks
xStocks is a series of tokenized US equities — on-chain tokens that each represent a real share of a publicly listed company. They are issued by Backed Finance, a regulated entity registered in Switzerland, and are governed by EU prospectus regulation (BaFin-approved).
How they are backed
Every xStock is collateralized 1:1 with the underlying share, held in segregated custody at regulated brokerage custodians. The token-issuing structure is a bankruptcy-remote SPV with an independent Security Agent, so the underlying shares are insulated from the issuer's operating balance sheet.
Reserves are publicly verifiable through proof-of-reserves attestations. Corporate actions on the underlying — such as dividends and stock splits — are reflected on-chain through token rebasing.
On Solana
xStocks settle as Token-2022 mints natively on Solana. They are tradable 24/7 across major Solana DEXs (Raydium, Jupiter, Kamino) and on supported centralized venues. Issuance and redemption operate during US equity-market hours; secondary trading on Solana is permissionless and continuous.
Stonks' role
Stonks is a permissionless launchpad and a consumer of the reserve. The protocol does not issue, custody, or guarantee the underlying equities. All custody, regulatory disclosures, and redemption rights remain with the xStocks issuer; Stonks only references the on-chain mint as a unit of account for its bonding curves.
Supported reserves
Five blue-chip US equities are currently supported as bonding-curve reserves. Each is a Token-2022 mint on Solana, issued by Backed Finance under the xStocks brand.
Lifecycle
A Stonk progresses through three observable on-chain states. The status badge on every token card and detail page reflects the current phase.
- Curve
- Trades execute against the bonding curve. Price discovery is fast and fully deterministic from the curve's reserves.
- Graduating
- The reserve has crossed the graduation threshold. Final swaps may still settle on the curve while liquidity is being migrated.
- Graduated
- The bonding curve is closed. Liquidity is held in a public AMM pool and the token trades via standard Solana DEX routing.
FAQ
+−Why tokenized stocks instead of SOL?
+−Does Stonks issue the tokenized stocks?
+−Where does liquidity go after graduation?
+−Can I sell at any time?
+−Which wallets are supported?
+−Is the protocol open-source?
Risks
Stonks is meme-coin trading on top of an experimental real-asset reserve. Please understand the following before trading or launching:
- Tokenized equities are issued by a regulated counterparty and may be subject to issuer-side controls (compliance windows, eligibility checks, redemption schedules).
- Underlying equity markets observe US trading hours; reserve quotes outside session can be stale or widen significantly at the open.
- Most meme tokens do not retain value. Trade with risk capital only and do not rely on the reserve as a floor.
- Smart-contract software carries non-zero risk regardless of audits. Do not allocate capital you cannot afford to lose.