Options on stock tokens: SOLO Vaults today, Leverage Machine next

StonkBrokers is building on chain options for Robinhood tokenized stocks in two steps. SOLO Vaults are the first: covered call vaults on $STONKBROKER with every dial set to one. Leverage Machine is the destination: a permissionless options exchange on stock tokens powered by the STORMM engine, where liquidity providers earn premiums on top of swap fees and buyers get leverage without liquidations. Neither desk ever market sells a position; settlement is in kind.

SOLO Vaults: single serving options lockers

A SOLO vault is one asset, one strike, one term, rolling automatically. Writers stake $STONKBROKER into a vault whose strike sits 1.5x, 2x, 3x, 4x, or 5x above the mark at round open, for a one day, one week, or one month term. Buyers pay a WETH premium to reserve that liquidity and receive a tokenized call series (an ERC-20 such as sbSTONKBROKER1W) they can hold or trade. At expiry a permissionless roll settles the round off the STONK/WETH pool TWAP: if the mark is above the strike, buyers exercise by depositing the option token and receive their in kind payout in $STONKBROKER while writers keep tokens worth the strike; below the strike, writers keep everything plus the premium.

The SOLO desk opens on stonkbrokers.io with the contracts; until then this page and the Leverage Machine page carry the product detail.

Leverage Machine and the STORMM engine

Leverage Machine turns Uniswap V4 concentrated liquidity into an options book. Depositing is opening a V4 position: put a Robinhood stock token like NVDA or TSLA into call liquidity, put ETH into put liquidity, or both, inside a strike range you choose. The same deposit earns three things at once: the classic swap fee, the option premium paid by buyers who borrow that liquidity, and the stock token's multiplier dividends. Liquidity returns to its ticks when options expire or execute, so there is no rebalancing and impermanent loss is only realized on withdrawal.

• Buyers purchase American style calls or puts. Each position mints as an ERC-721 NFT that can be sold before expiry, so leverage is portable and there is no perp style liquidation.
• Writers are ordinary LPs. If you already provide Uniswap liquidity on stock tokens, the same capital earns premiums here.
• Regenerative liquidity means the pool heals itself after every exercise instead of needing a keeper to re range.

Leverage Machine is StockFi infrastructure for the whole ecosystem and is not a claim about the $STONKBROKER ERC-20 itself. Development progress and desk screenshots are on the Leverage Machine page.

Why options on stock tokens

Robinhood tokenized stocks trade on chain around the clock, but on chain derivatives on them barely exist. Covered call vaults give stock token holders a yield that does not depend on selling, and an options exchange gives traders leverage that cannot be liquidated by a wick. Both plug into the rest of the suite: Smart LP for spot market making, the Stonk Exchange for spot trading, and Clock In distributions that pay protocol fees out in the same stock tokens.