Question 1

Why not just use a traditional off-chain brokerage?

Accepted Answer

Traditional brokerages trap your wealth in a "walled garden" where accessing liquidity requires either selling your assets (triggering taxes) or paying predatory margin rates of 8–12%. Spout eliminates this friction by tokenizing the asset, allowing you to borrow against your portfolio at 0% APR while keeping your long-term position intact.

Question 2

How does Spout handle off-hour market liquidations?

Accepted Answer

Spout handles after-hours liquidations through an Internal Buyout Protocol where the Lending Pool acts as the "Buyer of Last Resort" to prevent gap risk. If a liquidation is triggered when markets are closed, the Lending Pool automatically purchases the distressed collateral from the borrower at a pre-defined discount.

Question 3

How do I get started with Spout?

Accepted Answer

To get started with Spout, you simply choose your role based on your capital needs. Equity buyers and borrowers first complete a quick on-chain KYC verification to mint tokenized assets, which can then be locked in vaults to access 0% APR liquidity. Lenders can participate permissionlessly by connecting their wallet and depositing stablecoins to earn 10–15% APY.

Question 4

What is the Spout option strategy?

Accepted Answer

Spout utilizes an automated covered call strategy to generate yield that completely subsidizes your borrowing costs, enabling 0% APR loans. We algorithmically target deep Out-of-the-Money strike prices, ensuring you retain the vast majority of your asset's upside potential.

Question 5

What chains does Spout support?

Accepted Answer

Spout currently supports Solana and Solayer (SVM) to leverage their high-speed, low-cost infrastructure for real-time asset settlement. We plan to deploy on additional high-performance chains in the future as we scale.

Question 6

How does Spout verify asset backing and reserves?

Accepted Answer

Spout verifies asset backing through a real-time proof of reserve system where all underlying equities are held in segregated, SIPC-insured accounts at our regulated U.S. Broker-Dealer. We bridge this custody data on-chain via an automated API that constantly synchronizes minted assets with held shares to ensure a 1:1 match.

Frequently Asked Questions

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Frequently Asked Questions

How does Spout bring traditional assets like bonds to DeFi?

How does Spout handle off-hour market liquidations?

How can I integrate Spout's stablecoin into other DeFi protocols?

How does Spout tokenize U.S. stocks, ETFs, and bonds?

What is the benefit of using Spout's tokenized assets in DeFi?

How do I get started with Spout?

Is Spout compliant with U.S. regulations?

What privacy features does Spout offer?

Can I use Spout's assets as collateral for lending?

What is the process for minting Spout's stablecoin?

How are collateralization rates determined for different assets?

What chains does Spout support?

How does Spout verify asset backing and reserves?

What yield opportunities does Spout provide for tokenized assets?

Can users from emerging markets access Spout?

Ready to Start Earning Stable Yields?