Spout Finance is a DeFi prime brokerage that enables users to borrow stablecoins against tokenized US stocks at 0% interest while allowing lenders to earn yield. The protocol funds loans through a disciplined, per-asset covered-call options strategy rather than charging borrower interest, with 80% of collected premiums distributed to lenders. It operates on Solana with 11 supported tokenized equities backed 1:1 by real shares held at a regulated US broker-dealer.
Funding
Funding not disclosed
Founders
Product
Problem
Traditional securities-backed lending requires paying interest on borrowed funds, which reduces the economic benefit of unlocking liquidity from stock holdings. DeFi lending platforms typically charge variable and often high interest rates, while also exposing borrowers to liquidation risk without offering yield-generating opportunities for lenders.
Solution
Spout Finance provides a DeFi prime brokerage platform where users can borrow stablecoins against tokenized US stocks at 0% interest. The protocol generates revenue through a disciplined, per-asset covered-call options strategy that runs against the collateral pool, with 80% of collected premiums distributed to lenders as yield. Borrowers deposit tokenized equities as collateral at a 50% loan-to-value ratio, keep their upside exposure, and can reclaim their shares after repaying the loan. The platform operates on Solana with weekly cycles, per-asset risk tuning, and partial-liquidation protections, while all underlying shares are held in segregated custody at a FINRA-registered, SIPC-covered US broker-dealer with on-chain Proof of Reserve verification.
Target Audience
Primary users are crypto-native borrowers seeking to unlock liquidity from tokenized US stock holdings without selling, and stablecoin lenders looking for yield generated from options premium rather than borrower interest.
Features
- 0% interest borrowing against tokenized US equities and ETFs with a 50% loan-to-value ratio
- Covered-call options engine that writes weekly options per asset, distributing 80% of premium to lenders
- 200% collateralization ratio with automated liquidation system and VIX-based circuit breakers that shift to conservative strikes or halt new entries during elevated volatility
- Insurance fund that absorbs cycle losses before lender principal is affected
- On-chain Proof of Reserve continuously verifying tokenized supply matches actual share holdings at a regulated US broker-dealer
- Wallet-level KYC enforcement with off-chain identity storage and on-chain verified-status flags
- Weekly settlement cycles with no lockups for borrowers or lenders, allowing capital to free up regularly
- Support for 11 tokenized US equities and ETFs spanning large-cap tech, AI, crypto-linked ETFs, pharmaceuticals, energy, gold, and financials