FourMeme has automated the 4Stock subscription/redemption process—my first instinct, actually, is to look at the price.
USDC can be used to subscribe for the corresponding assets, and it can also be redeemed in reverse for USDC. Behind every transaction is the real buying/selling of the underlying shares.
This means that if the on-chain price gets too far away from the underlying stock, the market will find a way to close the price gap.
Of course, both sides charge a 1% fee, and factors like stock trading hours and liquidity mean it can’t perfectly track NAV at all times.
But for this kind of stock-to-on-chain asset mapping—with both subscriptions and redemptions—there’s a chance for the price to seek its own balance around the underlying stock.
USDC can be used to subscribe for the corresponding assets, and it can also be redeemed in reverse for USDC. Behind every transaction is the real buying/selling of the underlying shares.
This means that if the on-chain price gets too far away from the underlying stock, the market will find a way to close the price gap.
Of course, both sides charge a 1% fee, and factors like stock trading hours and liquidity mean it can’t perfectly track NAV at all times.
But for this kind of stock-to-on-chain asset mapping—with both subscriptions and redemptions—there’s a chance for the price to seek its own balance around the underlying stock.
