Tokenized Assets
Bringing Traditional Markets to DeFi
Everst pioneered tokenized stock lending across multiple blockchain networks, enabling users to supply and borrow synthetic representations of traditional equities. These tokenized assets track real-world stock prices through oracle feeds, creating new opportunities for cross-market strategies.
What Are Tokenized Stocks?
Tokenized stocks are blockchain-based tokens that mirror the price of traditional equities. While they don't represent actual ownership of the underlying shares, they provide price exposure and can be used in DeFi protocols like Everst.
Key Characteristics
24/7 Trading Unlike traditional markets with set hours, tokenized stocks can be supplied, borrowed, and transferred at any time.
Programmable Smart contracts can interact with tokenized stocks, enabling automated strategies and composability with other DeFi protocols.
Fractional Purchase any amount, not restricted to whole shares, making expensive stocks accessible to all users.
Global Access Available to anyone with an internet connection and Web3 wallet, no brokerage account required.
Available Tokenized Stocks
Technology Sector
AAPL - Apple Inc.
World's largest tech company, iPhone manufacturer
Market cap: ~$3 trillion
Stable earnings with good dividend history
MSFT - Microsoft Corporation
Cloud computing and office software giant
Azure cloud services growing rapidly
Leading AI technology investments
GOOGL - Alphabet Inc.
Search engine and advertising technology leader
YouTube, cloud services diversified business
Frontier research in AI and quantum computing
AMZN - Amazon.com Inc.
E-commerce and cloud computing (AWS) dual engine
AWS is main profit source
Logistics and AI innovation
TSLA - Tesla Inc.
Electric vehicle and clean energy pioneer
Autonomous driving technology leader
High growth but high volatility
NVDA - NVIDIA Corporation
AI chip and data center dominance
Gaming GPU traditional advantage
Biggest beneficiary of AI revolution
META - Meta Platforms Inc.
Facebook, Instagram social media
Metaverse VR/AR technology investment
Advertising revenue as main source
Financial Sector
JPM - JPMorgan Chase & Co.
One of the largest US banks
Investment banking and wealth management
Benefits from rising interest rate cycles
BAC - Bank of America Corp.
Extensive retail banking operations
Credit card and lending business
Strong cost control capabilities
V - Visa Inc.
Global payment network leader
High profit margins and stable growth
Benefits from digital payment trends
MA - Mastercard Inc.
Visa's main competitor
Strong international business expansion
Fintech innovation investments
Index Funds
SPY - S&P 500 ETF
Tracks US top 500 companies
Overall market performance representation
Best choice for diversified risk
QQQ - Nasdaq 100 ETF
High tech stock concentration
Innovation company growth potential
Relatively higher volatility
DIA - Dow Jones Industrial Average ETF
30 blue-chip stock representation
Traditional value stock orientation
Historic market indicator
Consumer Sector
WMT - Walmart Inc.
World's largest retailer
Good defensive properties during recession
Ongoing e-commerce transformation
DIS - Walt Disney Company
Entertainment and media giant
Theme parks and streaming services
Brand value and intellectual property
NKE - Nike Inc.
Global athletic brand leader
Strong growth in China market
Direct-to-consumer business model transformation
MCD - McDonald's Corporation
Global fast food chain giant
Stable cash flow from franchise model
Digital and delivery expansion
Use Cases
Long-Term Holding with Yield
Hold tokenized stocks while earning supply APY, similar to securities lending in traditional finance.
Real Case:
Supply $10,000 worth of AAPL tokens
Earn 6-12% annualized yield
Simultaneously benefit from AAPL stock price appreciation
Total return = Stock price gains + Lending yield
Hedging Strategies
Borrow tokenized stocks to hedge existing positions or express bearish views without traditional short selling.
Strategy Example:
Hold tech stock portfolio
Borrow QQQ tokens to hedge tech stock risk
Reduce losses during market downturns
Still benefit during market upturns
Portfolio Diversification
Add traditional equity exposure to your crypto portfolio without leaving the DeFi ecosystem.
Diversified Allocation:
40% Cryptocurrencies (BTC, ETH)
30% US Stock Indices (SPY)
20% Individual Stocks (AAPL, MSFT)
10% USDT Stablecoin
Arbitrage Opportunities
Exploit price differences between tokenized stocks and their traditional counterparts when markets diverge.
Arbitrage Scenario:
Tokenized TSLA price deviates from real stock price
Buy in cheap market, sell in expensive market
Earn profit from price convergence
Leveraged Exposure
Use tokenized stocks as collateral to borrow USDT, then purchase more stocks for leveraged positions.
Leverage Strategy:
Supply $10,000 worth of AAPL
Borrow 7,000 USDT (70% LTV)
Use USDT to buy more AAPL
Amplify AAPL price movement returns
Oracle Pricing
How Prices Are Determined
Tokenized stock prices come from multiple oracle sources to ensure accuracy:
During Market Hours (9:30 AM - 4:00 PM ET)
Real-time feeds from major exchanges
Sub-minute price updates
Multiple data provider aggregation
After Market Hours
Last closing price maintained
After-hours trading data when available
Smooth transition at market open
Price Feed Providers
Chainlink
Primary price source
Decentralized oracle network
Time-weighted average pricing
Pyth Network
High-frequency updates
Professional market maker data
Confidence intervals provided
Oracle Security
All tokenized stock prices undergo validation:
Maximum deviation checks between sources
Circuit breakers for extreme movements
Manual override capability for emergencies
Historical price validation
Investment Strategies and Tips
Beginner Strategies
Conservative Portfolio:
60% SPY (diversified risk)
30% AAPL (blue-chip stable growth)
10% USDT (liquidity reserve)
Growth Portfolio:
40% QQQ (tech stock growth)
25% NVDA (AI concept leader)
25% TSLA (electric vehicle innovation)
10% USDT (risk buffer)
Advanced Investment Strategies
Sector Rotation Strategy:
Adjust sector allocation based on economic cycles
Recession: WMT, MCD defensive stocks
Recovery: JPM, BAC financial stocks
Prosperity: AAPL, MSFT tech stocks
Event-Driven Strategy:
Increase relevant stock positions before earnings
Industry adjustments for regulatory policy changes
Rapid response to major news events
Professional Trading Strategies
Pairs Trading:
Long NVDA, short traditional chip stocks
Long TSLA, short traditional auto stocks
Long tech stocks, short traditional retail
Macro Hedging:
Inflation environment: increase commodity and REIT exposure
Interest rate hike cycle: increase bank stocks, reduce growth stocks
Economic recession: increase defensive stock allocation
Collateral Parameters
Tokenized stocks have carefully calibrated risk parameters:
Blue-chip Stocks (AAPL, MSFT, GOOGL)
Collateral Factor: Up to 75%
Liquidation Threshold: 80%
Supply Cap: Configurable per asset
Borrow Cap: Configurable per asset
Recommended Strategy: Core long-term holdings
Growth Stocks (TSLA, NVDA)
Collateral Factor: Up to 70%
Liquidation Threshold: 75%
Supply Cap: Configurable per asset
Borrow Cap: Configurable per asset
Recommended Strategy: Moderate allocation with close monitoring
Index Funds (SPY, QQQ)
Collateral Factor: Up to 75%
Liquidation Threshold: 80%
Supply Cap: Configurable per asset
Borrow Cap: Configurable per asset
Recommended Strategy: Diversified base allocation
Financial Stocks (JPM, BAC, V, MA)
Collateral Factor: Up to 70%
Liquidation Threshold: 75%
Recommended Strategy: Cyclical allocation adjustment
Integration with Traditional Finance
Hybrid Liquidation System
Everst's unique liquidation engine handles tokenized stocks through:
Primary Path: DEX liquidity on PancakeSwap and 1inch
Secondary Path: OTC desks and market makers
Emergency Path: Direct redemption when available
This ensures efficient liquidations even for less liquid tokenized assets.
Cross-Market Strategies
Combine tokenized stocks with crypto assets:
Supply AAPL, borrow USDT for crypto purchases
Supply USDT, borrow TSLA for short positions
Create diversified collateral baskets
Getting Started with Tokenized Stocks
For Stock Investors New to DeFi
Set up a Web3 wallet (MetaMask recommended)
Acquire native tokens for gas fees
Bridge USDT to your chosen network
Supply USDT to Everst
Borrow tokenized stocks
Hold or trade as desired
For DeFi Users New to Stocks
Research traditional equity markets
Start with index funds (SPY, QQQ)
Use conservative collateral ratios
Monitor during market hours
Understand correlation with crypto
Stock Analysis Basics
Fundamental Analysis Key Points:
P/E Ratio: Valuation reasonableness
Revenue Growth: Company business expansion capability
Profit Margins: Operational efficiency and competitiveness
Debt Levels: Financial health status
Technical Analysis Key Points:
Moving Averages: Trend determination
RSI: Overbought/oversold conditions
Volume: Price movement confirmation
Support/Resistance: Key price levels
Industry Analysis Key Points:
Industry Life Cycle: Growth stage assessment
Competitive Landscape: Market share changes
Regulatory Environment: Policy impact assessment
Technology Trends: Industry development direction
Market Hours and Event Calendar
Important Time Points
Daily Schedule:
9:30 AM ET: US stock market opens, real-time price updates begin
4:00 PM ET: US stock market closes, prices relatively stable
After Hours: 5:00-8:00 PM ET, limited price updates
Weekly Schedule:
Monday: Market opens, news digestion
Friday: Position adjustments, weekend risk management
Annual Events:
Earnings Seasons: Jan, Apr, Jul, Oct, increased volatility
Fed Meetings: Interest rate decisions affect market
Election Years: Policy uncertainty impact
Risk Considerations
Regulatory Risk
Tokenized stocks exist in an evolving regulatory environment. Rules may change affecting availability or functionality.
Oracle Dependency
Price accuracy depends on oracle reliability. While we use multiple sources, oracle failures could impact positions.
Market Hours Impact
Price updates may be less frequent outside traditional market hours, potentially affecting liquidation timing.
No Dividends or Voting Rights
Tokenized stocks don't provide dividends, voting rights, or other benefits of actual stock ownership.
Bridge Risk
Some tokenized stocks require bridging from other chains, introducing additional technical and security considerations.
Stock-Specific Risks
Company Risk: Individual company operational changes
Industry Risk: Challenges faced by entire industries
Macro Risk: Economic cycles and policy impact
Liquidity Risk: Lower liquidity compared to traditional stocks
Future Developments
Planned Additions
Commodities (Gold, Silver, Oil)
International stocks (European, Asian markets)
Sector-specific ETFs
Inverse and leveraged tokens
Enhanced Features
Limit orders for tokenized stocks
Options strategies
Dividend token distributions
Governance token for stock selection
Technology Innovation
AI-driven investment advice
On-chain stock analysis tools
Automated portfolio rebalancing
Cross-chain stock trading aggregation
Practical Tools and Resources
Analysis Tools
Real-time Price Charts: TradingView integration
Earnings Calendar: Important event reminders
News Aggregation: Relevant stock news
Technical Indicators: RSI, MACD, moving averages
Educational Resources
Stock Investment Basics: For crypto investors
DeFi Stock Strategies: Cross-market arbitrage
Risk Management: Position sizing and hedging
Tax Guidance: Different jurisdiction recommendations
Community Support
Expert Analysts: Regular market analysis
Strategy Sharing: Community success cases
Risk Discussion: Lessons learned sharing
Tool Recommendations: Third-party analysis tools
Important Disclaimers
Not Securities: Tokenized stocks are synthetic assets and don't represent actual securities ownership.
Price Tracking: While designed to track stock prices, perfect correlation isn't guaranteed.
Availability: Subject to regulatory requirements in your jurisdiction.
Tax Implications: Consult a tax professional regarding treatment of tokenized stock transactions.
Investment Risk: Stock investment carries risk of principal loss, past performance doesn't guarantee future results.
Market Risk: Stock prices can be highly volatile, especially individual and growth stocks.
Learn More
Tokenized stocks on Everst provide DeFi-native exposure to traditional markets. Trade responsibly and understand the risks. Stock investment requires additional research and expertise.
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