The Simple Idea

Most crypto tokens are just speculation. Most traditional ETFs give you exposure but zero flexibility. This protocol sits in between.

You get exposure to a basket of assets that we believe will shape the future of technology and markets. At the same time you can unlock a large portion of that value as a loan without selling your position, keep earning from the system, and still have a clear path back to the real assets whenever you want.

The design deliberately creates two tokens so that one can be freely traded and listed on major exchanges while the other carries the actual claim on the vault and powers the credit system.

The Two Tokens

$OAK: The Free-Floating Token

$OAK is the free-floating token. It has a fixed supply with no mint function after deployment. There is no tax when you buy or sell it. It is designed so it can be listed on centralized exchanges. Holding $OAK gives you economic exposure to the growth of the system, but the actual claim on the vault assets is exercised through the second token.

$sOAK: The Vault Receipt & Collateral Token

$sOAK is the vault receipt token. It is the only token the vault will accept when you want to redeem for the real underlying assets. $sOAK is also the collateral you use if you want to take a loan. When $sOAK is locked in a loan it is staked and illiquid. That is the “s” in $sOAK.

$sOAK has a flexible supply: anyone can wrap more $OAK at any time and mint additional $sOAK. It does not become scarcer in absolute terms. What does improve over time is the claim quality of each $sOAK. Because a portion of $sOAK is burned on every wrap, unwrap, and full redemption (the 5% redemption fee is fully burned), and because the corresponding $OAK stays trapped inside the 4626-style contract, each remaining $sOAK represents a gradually larger claim on the pool of locked $OAK. The $sOAK-to-$OAK exchange rate is structurally biased upward even as new $sOAK continues to be minted.

The Vault

All protocol revenue is used to buy a basket of assets and hold them in the Vault. The basket is intentionally simple and does not constantly rebalance. New money is always split the same way:

Because the basket does not rebalance, winners keep their weight and losers are not automatically sold. Continuous new capital acts like a steady DCA into every name, including the ones that have underperformed.

What You Can Do

How to Use a Loan

Loans are paid out in the actual index assets, not USDC. That opens up a few different strategies:

• Lever into your winning picks. Swap the borrowed index assets into the names you believe in most, moving more value into your strongest positions while your $sOAK keeps its full claim on the Vault.
• Hedge. Sell the borrowed assets for USDC. You now hold stable value against your locked collateral, which protects you if the market turns down.
• Skip the loan entirely. Stake and hold $sOAK. Yield comes from the volatility and arbitrage flowing through the liquidity pools, since every wrap, unwrap, and swap feeds fees back into the Vault.

Complete Fee Schedule

Every fee in the system is listed below. Most fees are routed into the Vault to buy more index assets. The $sOAK burn portions (including the full 5% redemption fee) improve the claim quality of remaining $sOAK over time and push the $sOAK:$OAK exchange rate higher.

Arbitrage, Volatility Capture & Expanding Liquidity

The First Two Liquidity Pools

At launch the protocol seeds two primary pools:

• $OAK / USDC
• $sOAK / STONKBROKER

These two pools are the engine that turns external volatility into vault growth.

How Stonkbroker Volatility Creates Arbitrage

STONKBROKER is held both inside the Vault (5% allocation) and as one side of the $sOAK/STONKBROKER liquidity pool. When STONKBROKER pumps hard in its own main trading pool, the $sOAK/STONKBROKER pool will temporarily lag. That pool is now offering STONKBROKER at a discount relative to the open market.

The arbitrage path is straightforward:

1. Buy $OAK in the $OAK/USDC pool.
2. Wrap $OAK into $sOAK (paying the wrap fee that partially funds the Vault).
3. Use that $sOAK to buy the cheaper STONKBROKER inside the $sOAK/STONKBROKER pool.
4. Sell the STONKBROKER in its main pool at the higher market price.

Every step of this loop generates volume and fees. The wrap fee and any pool fees are routed into the Vault, buying more of the index assets. The same loop works in reverse on dumps. Volatility in either direction creates the price discrepancy that arbitrageurs close, and every close feeds the Vault.

Bolting On More Pools

The system is deliberately open to additional liquidity pools. Any new pair that includes $OAK or $sOAK (for example $OAK/ETH, $OAK/USDC on another venue, $sOAK paired with other ecosystem tokens, or pairs against other indexes) becomes another surface that can be arbitraged against the existing pools and against the Reserve Price of the Vault.

Each new pool lets the protocol piggyback on that asset’s own volatility. Pumps and dumps in any paired asset create temporary discounts or premiums across the web of pools. Arbitrageurs move capital through wraps, unwraps, and swaps to close those gaps. Every movement captures fees that flow back into the Vault. The more pools that exist, the more volatility the protocol can harvest, and the faster the index compounds.

Reserve Price as the Anchor

Underneath all of the pool-to-pool arbitrage sits the Reserve Price (total Vault value ÷ $OAK supply). If $OAK ever trades at a meaningful discount to that Reserve Price, the classic wrap-and-redeem path becomes profitable and buying pressure returns. Together, the pool arbitrage and the Reserve Price arbitrage keep $OAK linked to real value while continuously converting market activity into more assets held by the Vault.

Why This Design

• No transfer tax on $OAK means it can actually be listed on major exchanges.
• Fixed supply of $OAK (with no mint function) removes a major smart-contract risk. When $OAK is wrapped it is held in the contract, not burned, so total supply stays constant.
• $sOAK has flexible supply, but its claim on the trapped $OAK improves over time through burns (including the full 5% redemption burn), so the exchange rate is structurally biased upward.
• You can unlock most of the value of your position as a loan without fully exiting.
• The vault grows from real activity (wraps, loans, liquidations, redemptions, and arbitrage volume across every pool) rather than from inflationary emissions.
• The index is simple and does not constantly trade against itself.
• Every new liquidity pool bolted onto $OAK or $sOAK becomes another volatility engine that feeds the Vault.

Honest Risks

In One Paragraph

$OAK is the liquid, fixed-supply token you can trade freely. When it is wrapped, it is held in the contract as backing. It is never burned. $sOAK is the flexible-supply receipt token that owns a share of a growing vault of future-oriented assets and can be used as collateral to borrow those assets. Although more $sOAK can always be minted, burns (including the full 5% redemption fee) and the trapping of $OAK inside the contract steadily improve the claim each $sOAK has on the locked $OAK. The first liquidity pools ($OAK/USDC and $sOAK/STONKBROKER) turn external volatility into arbitrage volume that feeds the Vault. Any future pool that includes $OAK or $sOAK becomes another engine for the same process. The Reserve Price keeps $OAK anchored to real asset value. Early participants who move into $sOAK and use the credit facility are positioned to capture more of the upside created by later activity.