Stock Splits
Stock Split Handling in Own Protocol
Overview
Own Protocol supports stock splits natively through its xToken architecture and onchain oracle coordination. When a stock undergoes a split — e.g., 2:1 or 1:2 — the protocol ensures that all synthetic balances and price feeds are automatically and accurately updated to reflect the new structure.
How It Works
1. Oracle Flags Price Deviation
When a stock split occurs in traditional markets, the price of the stock adjusts suddenly (e.g., from $200 to $100 in a 2-for-1 split).
Own’s oracle infrastructure detects this sudden price deviation and flags the event as a potential stock split.
2. Governance Verification
Once flagged, the event is subject to protocol governance approval to verify the legitimacy of the stock split.
This avoids false triggers and ensures that only real-world corporate actions result in token-level adjustments.
3. Protocol Executes Stock Split
After verification, the protocol executes the split:
All xToken balances are updated based on the new split ratio
The xToken price is scaled down proportionally
Total value held remains unchanged
This ensures perfect continuity of user exposure without requiring any manual action from users.
Example: 2:1 Stock Split
Original Price: $200
User holds: 5 xTSLA (synthetic Tesla)
After split:
New Price: $100
New Balance: 10 xTSLA
Total Value: Still $1,000
Why This Matters
Users don’t need to take any action — the split is handled entirely onchain
Ensures accurate exposure parity with the real-world asset post-split
Keeps Own Protocol synchronized with traditional equity events while remaining decentralized
TL;DR
Oracle Monitoring
Detects sudden price changes to flag potential splits
Governance Role
Confirms real-world stock split before applying onchain
xToken Adjustment
Balances and prices are scaled proportionally
User Impact
No action needed — exposure remains identical
Split Types
Supports both regular & reverse splits
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