Buy-side Guide
How Buy-side Users Gain Asset Exposure in Own Protocol
What Is Exposure in Own?
In Own Protocol, users can gain exposure to real-world assets like stocks by entering into a Total Return Swap (TRS) with the protocol.
Instead of buying the asset directly, users:
Mint a tokenised version of the asset on-chain
Pay a floating interest rate to the sell-side liquidity providers
Receive the asset's price performance
This allows users to speculate or hedge without needing to use a traditional broker or hold the real-world asset.
How It Works
Step-by-Step:
Choose an Asset Pool: Select an asset you want exposure to (e.g., TSLA).
Deposit Funds: Provide two components:
Deposit amount — the capital representing the asset exposure
Collateral — a buffer used to pay the floating interest (Collateral requirements will be 2% of deposit amount)
Mint Synthetic Asset: The protocol mints synthetic tokens representing your exposure.
Pay Interest: Interest is deducted from the yield that stablecoins generate in the pool, along with 1% paid from the collateral balance.
Rebalance Daily: The value of your position is updated daily to reflect real-world price changes.
Redeem During Active Cycles: You can make deposit or redemption requests only during the pool's active cycle. Claims are processed after LPs perform rebalancing.
Important Mechanics
The pool operates in cycles aligned with market days.
Users can only initiate deposits or redemptions during the active period of a cycle.
Rebalancing occurs only on market days. This introduces a 12–48 hour delay in redemption processing depending on whether it’s a weekday or weekend.
Claiming your synthetic asset or reserve token happens only after the pool is rebalanced.
What You Gain
Price Exposure
You gain upside/downside of the asset’s price
Capital Efficiency
No need to fully buy the asset
Onchain Simplicity
Trade with your wallet, no broker needed
Global Access
Permissionless, accessible to anyone
Asset Composability
Minted tokens are standard ERC-20s usable across DeFi apps
Example: Minting Synthetic TSLA
Let’s say you want exposure to TSLA, currently priced at $100.
Step 1: Mint
You deposit $10,000 USDC as the deposit amount
You also deposit $200 USDC as collateral (based on 2% collateral ratio)
You mint 100 synthetic TSLA tokens
Now you hold 100 tokens that track TSLA price.
Step 2: Pay Interest
Pool utilisation is 52%
Based on that, your floating interest rate is 5% annualized (approx. 0.016% daily)
Interest is deducted primarily from the stablecoin yield. The additional amount needed will be deducted from your collateral.
Step 3: Price Moves
Case A — TSLA goes to $130
Your synthetic tokens are now worth
$130 × 100 = $13,000You earned $3,000 in price appreciation
You paid ~$1.60 × N days in interest from collateral
Case B — TSLA drops to $90
Your synthetic tokens are now worth
$90 × 100 = $9,000You’ve lost $1,000 in asset value
Interest continues to deduct from your collateral
You can redeem or hold based on market view. Redemptions will be processed post rebalancing, subject to cycle constraints. When you redeem you receive the reserve tokens based on the current price of the asset + the balance collateral after interest deductions.
Costs & Risks
Minting & Redemption Delay
~6hrs - Depending on market schedule
Market Volatility
Affects both your token value and collateral requirements
Protocol Design Philosophy
Own isn’t just about synthetic exposure — the core idea is to build a protocol where tokens are fully backed off-chain. It's closer to a decentralized, tokenized stock protocol than a traditional synthetic asset system.
To support this:
LPs are expected back the pools by holding the actual asset off-chain
We will introduce optional zk-proof-based verification for LP asset holdings.
Summary: Should You Use Own?
Use Own Protocol if you want to:
Gain exposure to real-world assets without a broker
Operate entirely on-chain using just your wallet
Trade ERC-20 asset tokens freely across DeFi
Speculate or hedge with capital-efficient strategies
But be mindful of:
Floating interest and collateral top-ups
Delay between request and actual redemption
TL;DR
Synthetic Exposure
Get the performance of real assets like TSLA on-chain
No Broker Needed
Mint, hold, and redeem with your wallet
Interest Deduction
Paid from collateral
Cycle-Based System
Redemptions processed only after market-day rebalances
Fully Backed Vision
Protocol prioritizes real-world backing for asset tokens
Last updated