Spout Finance: borrow against your stocks at 0% interest
Spout Finance lets you borrow against your tokenized US stocks at 0% interest, and lets lenders earn yield. Loans are funded by a disciplined covered-call strategy run per asset, not by charging borrowers interest.
How it works
- Borrowers: deposit tokenized US stocks as collateral and borrow USDC at 0% interest, without selling. The trade off is giving up the move above the strike in options cycles when calls are exercised.
- Lenders: deposit USDC into a Senior or Junior tranche and earn covered call premium plus Treasury bill yield on idle cash.
- How loans are funded: a disciplined, per-asset covered-call options strategy generates the premium that covers borrowing costs, instead of charging borrowers interest.
Why Spout
- 0% interest borrowing against tokenized equities
- Yield for lenders, funded by options premium rather than user leverage
- Weekly cycles, per-asset risk tuning, and partial-liquidation protections
Working with
Solana, Coinbase, Circle, Stripe, Anchorage Digital, Bitget, Ondo, Paxos, Dinari, MoonPay, Backpack
Learn more: Learn · Docs · About
From the docs
- How Spout works
- What are tokenized stocks?
- How borrowing against tokenized stocks works
- What a 0% interest loan really costs
- Supported tokenized stocks and ETFs
- How lending works
- Senior and Junior tranches
- How Spout manages risk
- Fees
- Where Spout is available
- FAQs
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Frequently asked questions
How does borrowing at 0% interest actually work?
You post tokenized US stocks or ETFs as collateral and borrow USDC, up to 50% of the collateral value. Spout charges no interest. Instead, it sells covered calls on the shares behind the collateral, and the premium from those calls pays lenders. Your loan balance only changes when you borrow more or repay.
What is the risk to borrowers?
You give up upside above the strike in a cycle where the calls are exercised. When that happens, part of your collateral is sold at the strike and bought back at the next market price, so you end with slightly fewer tokens, while your loan stays the same. If your collateral falls far enough to reach its liquidation threshold, part or all of it is sold to repay the loan. See Risks for Borrowers in the docs.
How does Spout generate yield for lenders?
Lender yield comes from covered call premium on the shares behind borrower collateral, plus Treasury bill yield on cash that is not lent out. Spout keeps a protocol fee of 20% of gross premium, or 10% while the Insurance Fund is at its target, and takes no fee on Treasury bill yield. The targets of about 9% for Senior and about 32% for Junior come from the model on the Tranche Math page and are not guaranteed.
What assets can I borrow against?
Spout supports 11 tokenized US stocks and ETFs from approved third party issuers, across tech, AI infrastructure, bitcoin and Solana ETFs, healthcare, financials, energy and gold. Every asset has the same 50% maximum loan to value, with its own liquidation threshold between 54.1% and 62.5%. See Supported Assets in the docs.
How do I get started?
Sign in with your email or connect a Solana wallet such as Phantom, Solflare or Backpack. Then post tokenized stocks to borrow USDC, or deposit USDC into the Senior or Junior tranche to lend. Lending needs no identity check; if a feature you use needs one, the app walks you through it.
Is my collateral safe?
Collateral sits in a pool escrow controlled by the Spout program. Once it joins a pool, the tokens are redeemed with their issuer for real shares held in Spout's US brokerage account, and a matching receipt token takes their place in the pool. Broker records and onchain records are reconciled before each options cycle moves on, and anything that does not match halts for review. Every loan opens with collateral worth at least twice the loan.
Can I withdraw at any time?
Borrowers can repay at any time. Collateral can be withdrawn between options cycles, once it has been through one cycle and while the loan stays within 50% loan to value. Senior lenders can withdraw instantly with a haircut of 0% to 3% depending on the cash reserve, or join a queue with no haircut. Junior lenders give 45 days notice. A 0.20% withdrawal fee applies to every lending withdrawal.
Where can I use Spout?
Spout is not available in restricted jurisdictions, including the United States and its territories, Canada and sanctioned countries. The full list is on the Where Available page in the docs, and eligibility is set out in the Terms of Service.
What happens during a market crash?
Loans open at no more than 50% loan to value, so prices have to fall a long way before a liquidation. If a position reaches its threshold, it is partly or fully sold to repay the loan. Any bad debt is absorbed first by the Insurance Fund, then by the Junior tranche, and only then by Senior. Automatic pauses, such as an 85% utilization cap, protect the pool while conditions recover.
How is Spout different from other DeFi lending protocols?
Most lending protocols pay lenders from borrower interest, so borrowers pay a rate that can spike when demand rises. Spout charges borrowers no interest and pays lenders from covered call premium on the collateral, plus Treasury bill yield on idle cash. Lenders choose between a Senior tranche, paid first, and a Junior tranche, which earns more and absorbs losses first.