What happens to tokenized equities when there are stock splits? Let’s say the token contracts have a way to rebase, but what about all the other amm, lending pools and oracle contracts? Will this not lead to wild arbitrage opportunities or big liquidations?
Post by Blackbird Club
There should be a freeze period where neither the split nor the original can trade.
Freeze the old, issue the new.
Unfreeze the new.
What the chain says
- Block
- 963 002
- Time
- 2026-08-19T13:01:33Z
- Signer
- 1Q9hAPVcKYwm9NmAZDuY3qWW8zPnph8iJc
- App
- twetch
- Type
- reply
- Content type
- text/markdown
Fields the transaction did not carry are omitted. Open the payload to see the bytes as stored.
Signed by
1Q9hAPVcKYwm9NmAZDuY3qWW8zPnph8iJc UnverifiedReplies (4)
What if I supplied LP then took the LP token to a lending protocol and looped it 4x and then took then tokenized the position into a liquid staking protocol….
Now I’m like 8 layers deep into composability and you froze my token and I can’t do defi
then you should get some help... lol
1 - There must be communication between the stock issuer and the holders. No more.
2 - If the current holder (not owner) issues tokens backed by the original token (stock in this case), they should manage how to do this for their token holders.
3 - Same as 2 but for on the next layer
4 - Same as 3
...
If somebody in the chain of issuance fails to comply, penalty.
Stock splits should be notified some time in advance and all institutional holders must be familiar with the procedures.
look I need the extra .2% yield for taking in infinite contract execution risk
276 912 sat