xStocks is an on-chain token issued by Backed Finance, a Swiss compliant asset tokenization platform. It involves purchasing real U.S. stocks and locking them into Swiss/German regulated custodian banks, which are then 1:1 mapped into 24-hour tradable tokens on the Solana blockchain. The price is pegged to the real stocks, but there are no dividends or voting rights.

Who Provides Liquidity | xStock

On-chain liquidity pools (DeFi): General users or institutions pair xStock tokens (such as TSLAx, SPYx) with stablecoins and inject them into liquidity pools on Solana. These pools are deployed on DEX platforms (such as Jupiter, Raydium).

Trading Mechanism | xStock

The trading mechanism of xStocks maintains price stability through market participants (including market makers) who dynamically issue and redeem tokens based on supply and demand. When the price of xStock on Pionex deviates from the price of the underlying stock on the New York Stock Exchange or NASDAQ, arbitrageurs will intervene to eliminate the price difference through buying and selling operations, similar to the mechanism in the stablecoin market.

This mechanism creates two closely linked markets:

• Primary Market: U.S. securities exchanges, providing the price benchmark during regular trading hours.
• Secondary Market: On-chain trading on Pionex, operating 24/7.

During non-trading hours in the U.S. market, the price of xStock may fluctuate based on pre-market or after-hours news and market sentiment, forming a predictive market that offers additional trading opportunities for investors.

Is There a Risk of Decoupling from the Underlying Stock?

xStock may experience “decoupling” of its price under the following five extreme scenarios:

1. Liquidity Gap: If the trading volume of a particular xStock plummets and there is insufficient depth on the buy/sell side, the on-chain price may temporarily deviate from the real stock price.
2. Underlying Stock Suspension: During a suspension of trading on traditional exchanges, xStock can still be traded. However, the lack of a valid reference price may cause the price spread to widen rapidly.
3. Reserve Anomalies: Errors by the custodian, legal freezes, or technical malfunctions that prevent the on-chain reserves from being fully redeemable can lead to a breakdown of the peg.
4. Black Swan Events: In extreme market conditions (such as flash crashes or geopolitical crises), the different update frequencies of prices on-chain and off-chain may result in significant temporary deviations.
5. Product Rule Adjustments: If the issuer changes the support ratio, suspends subscriptions/redemptions, or switches to a synthetic model, it will directly weaken the price tracking accuracy.

In short, xStock is only “pegged” to, not “equivalent” to, the underlying stock. There is a possibility of decoupling under extreme conditions. Please fully assess the risks.

Open the Pionex APP, click on the “Market” button at the bottom of the page, switch to “Spot” – “xStocks”, select the xStock coin you wish to invest in, go to the details page, and click [Buy] to purchase the xStocks.

First, open the Pionex APP, click on the “Bots” button at the bottom of the page, then click on the “Create Bot” button at the top of the page and select the “On-Chain Grid” bot. When the pop-up window appears, choose “Follow” or manually set the parameters to place an order.

• Total Annualized Return: [(Total profit / Investment amount) / (Running days / 365)]*100%
• Investment Amount: The amount of funds invested when the grid bot is activated
• Total Profit: Grid profit + floating profit and loss
• Grid Profit: The profit earned from arbitraging by buying low and selling high with the grid bot
• Floating Profit and Loss: (Current price – holding purchase cost) * number of tokens held by the bot
• Grid Annualized Return: [(Grid profit / Investment amount) / (Running days / 365)]*100%