How Schrödinger works
Two systems, one chain. An issuance stack that turns an observed share into a token, and a launchpad that treats those tokens as quote assets.
The idea
A share the desk has bought but nobody has counted is, for our purposes, in two states at once: it might back a token, or it might not. The custodian's observation is what collapses it. Until the settled count is posted on-chain, the issuance controller will not mint a single unit, and there is no way to ask it nicely.
That is the whole trick, and it is deliberately boring. Every interesting failure in wrapped-asset design comes from minting first and reconciling later. Here the observation strictly precedes the token, and the check is re-run inside the mint call itself rather than by a monitor watching from outside.
Issuance
A regulated vehicle acquires the listed micro-cap through a prime broker and holds it fully paid at a custodian. The custodian posts the settled share count to the observation registry. The controller then mints TICKERx to the market maker, one token per share, and only up to the observed count.
- Observation registry holds, per token, the observed share count and the block it was posted at. A redemption invalidates the observation it consumed, so a share that has been sold can never back a later mint.
- Issuance controller is the only address the stock token will mint for. It refuses to mint against a stale observation and refuses any mint that would break the invariant.
- Transfer restrictor is a blocklist. Stock tokens are not offered to US persons and known exchange deposit addresses can be blocked per token.
Checked inside mintFromCustody, not by a watcher. If the inequality would break, the transaction reverts and no token is created.
The peg
One token is one share, not one dollar. Balances never rebase. If the underlying doubles, one token is still one share and it is simply worth twice as much. The on-chain price is held to the share price by mint and redeem arbitrage, the same mechanism that keeps an ETF near its basket: if TICKERx trades above the share, the market maker mints and sells; if it trades below, it buys and redeems.
Coverage is the ratio of observed shares to tokens outstanding, in basis points. Above 100% means the desk holds more shares than it has issued tokens against, which is the normal state after a fresh observation and before the corresponding mint.
Corporate actions
Micro-caps reverse split constantly, and a burn-and-reissue would break every downstream integration. Instead each stock token carries a multiplier. A one-for-ten reverse split multiplies by 1e17: balances do not move, the invariant re-scales, and the token still represents whatever the share now is. Dividends and spin-offs are handled by the desk off-chain and reflected in the observation.
The launchpad
Every listed TICKERx is a permitted quote asset. A curve launched against TOONx is priced in TOONx, so buying the meme is a bet on the meme and on the underlying at the same time.
- Total supply 1,000,000,000, of which 800,000,000 sits on the curve and 200,000,000 is reserved for the migration.
- Virtual-reserve constant product pricing, so the curve opens at a finite price with no seed liquidity.
- Trade fee 1.00%, split with the creator. Graduation fee 2.00%.
- An opening snipe window taxes very early buys on a decaying schedule and exempts nobody by default.
- Optional creator tax, capped by the factory, and an optional buyback that burns supply out of the graduation fee.
Graduation
When the curve sells out it seals: no further curve trades. The migrator opens a Uniswap v3 pool at exactly the curve's closing price, places a full-range position from the reserve supply and the raised quote, and sends that position to the liquidity locker. Rounding dust below a tenth of a basis point of either side is parked in the locker rather than minted as a second position, because a position with zero liquidity reverts.
Graduation target is 10,000 TICKERx raised per pair.
Contracts
Robinhood Chain, chain id 4663. Deployment status: Not deployed yet.
| Contract | Address |
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Risks
- The share sits with a custodian. Custodial failure, broker failure or a seizure is a real loss, and no on-chain check prevents it.
- Micro-caps are thin, volatile and get halted. A halt on the exchange does not halt the token.
- Only the market maker mints and redeems. Everyone else exits into a pool, and a pool can be thin.
- A bonding curve is not an investment. Most of them go to zero, and the ones quoted in a stock go to zero in a stock.
- The contracts are unaudited by a third party. Read them.