Spout Finance
Spout Finance is a decentralized prime brokerage on Solana that lets users borrow stablecoins against tokenized US stocks and ETFs at 0% interest, while lenders earn yield from a covered-call options strategy rather than borrower interest. The protocol runs weekly options cycles, distributes 80% of premium to lenders, and supports 11 tokenized assets with 50% loan-to-value ratios and 200% collateralization.
- Blockchain & Cryptocurrency
- Financial Technology
- Web3 & NFTs
- Software Only
- Artificial Intelligence
Funding
Founders
Founder details are not available yet.
Product
Problem
Borrowing against traditional stock holdings typically involves margin interest rates that erode returns, while tokenized equity holders lack efficient lending options that don't force them to sell their positions. Existing DeFi lending protocols charge borrower interest and often require overcollateralization with volatile crypto assets, limiting the utility of tokenized real-world assets as collateral.
Solution
Spout Finance provides a decentralized prime brokerage on Solana where users can borrow stablecoins against tokenized US stocks and ETFs at 0% interest, while lenders earn yield funded by an options-based strategy rather than borrower payments. The protocol runs weekly covered-call options against borrower collateral, collecting premium from implied versus realized volatility, and distributes 80% of that premium to lenders. Borrowers maintain full upside on their holdings at a 50% loan-to-value ratio, with positions fully reconstituted after each cycle and protection mechanisms including 200% collateralization and partial-liquidation safeguards. A VIX-based regime system automatically adjusts strike selection or halts new entries during elevated volatility, while an insurance fund absorbs cycle losses before lender principal is affected.
Target Audience
Primary users are tokenized stock holders seeking liquidity without selling their positions and stablecoin suppliers looking for yield from an options-based strategy rather than borrower leverage. The platform also serves DeFi power users and institutional participants interested in real-world asset lending on Solana.
Features
- 0% interest borrowing against tokenized US equities with 50% loan-to-value ratio and no lockups
- Covered-call options engine writing weekly contracts per asset, distributing 80% of premium to lenders
- Support for 11 tokenized US stocks and ETFs spanning tech, AI, crypto-linked, pharmaceutical, energy, gold, and financial sectors
- 1:1 asset backing by real shares held at a FINRA-registered, SIPC-covered US broker-dealer with on-chain Proof of Reserve
- VIX-based regime system for automated strike selection adjustment or halting new entries during market stress
- 200% overcollateralization with automated liquidation system and insurance fund for lender capital protection
- Wallet-level KYC with off-chain identity storage and on-chain verified-status flags for regulatory compliance
- Real-time pricing infrastructure integrated with Stork for accurate collateral valuation