Insiders
Can't sell without SEC Rule 144 restrictions and public disclosure — every sale is a signal to the market.
Weapon 03 · DeFi Lending Protocols
LENDING UNLOCK LIQUIDITY WITHOUT DILUTION.
DeFi lending for tokenized shares. No dilution. No personal guarantee.
DeFi Lending for Tokenized Shares
KEY HIGHLIGHTS
Non-dilutive liquidity, without the traditional trade-offs.
- 30–40% LTV
- 6–12% APR
- No personal guarantee
- No rehypothecation
The Problem
THE LIQUIDITY TRAP
Public company shareholders face a liquidity dilemma — every traditional option has a painful trade-off.
| Option | How It Works | The Catch | All-In Cost |
|---|---|---|---|
| Sell Shares | Open market sale | Price impact, signaling risk, taxable event | 10–30% |
| Traditional Stock Loan | Brokerage line of credit | 20% max LTV (often unavailable for small-cap stock), personal guarantee required | 6–10% |
| Block Trade | Large off-market sale | >20% discount to market, limited buyers | >20% |
| PIPE Financing | Private investment in public equity | Dilutive, reset provisions, deep discount | 10–25% |
Average cost of traditional liquidity: >20% all-in — plus personal liability and dilution risk.
Who Feels This
SHAREHOLDER PAIN POINTS
Liquidity needs don't stop just because your shares are locked up.
Long-Term Holders
Need liquidity for taxes, investments, or life events, without triggering a taxable sale.
Strategic Investors
Locked-up positions with no yield — capital sits idle while waiting for an exit.
Founders
Personal financial needs vs. fiduciary duty — every sale is scrutinized by the board and the market.
The Solution
LENDING PROTOCOL OVERVIEW
Partner with leading DeFi lending protocols. Tokenized shares become the collateral.
How It Works
- Pledge tokenized shares as collateral
- Borrow stablecoins (USDC)
- Permissionless access
- 24/7 instant execution
What You Don't Need
- No personal guarantee
- No credit check
- No dilution
Side by Side
TRADITIONAL VS. DEFI LENDING
Traditional
- ✕Personal guarantee required
- ✕Max LTV: 20% (often unavailable for small caps)
- ✕Interest rate: 6–10%
- ✕Rehypothecation: yes
DeFi
- ✓Personal guarantee: none
- ✓Max LTV: 30–40%
- ✓Interest rate: 6–12%
- ✓No rehypothecation
The Partners
BUILT ON BATTLE-TESTED INFRASTRUCTURE
We partner with leading DeFi lending protocols, each selected for a different strength.
Customizable Risk Pools
Optimized lending pools with configurable risk parameters, tailored to each issuer's collateral profile.
Flexible Market Design
Permissionless, modular lending markets that adapt collateral and borrow terms to tokenized securities.
Solana-Native Efficiency
High-capital-efficiency lending, purpose-built for tokenized securities on Solana.
CURRENC Capital (Arranger)
We structure the facility, select the protocol, and manage the relationship between issuer, protocol, and shareholders.
Combined protocols: $1B+ TVL · Audited by Trail of Bits, OpenZeppelin, and CertiK · Battle-tested infrastructure.
The Process
FIVE STEPS TO LIQUIDITY
From tokenized shares to stablecoins in your wallet.
- Tokenize
Shares are converted to ERC-1400 tokens via Securitize.
- Connect
The shareholder connects their wallet to a partner lending protocol.
- Deposit
Tokenized shares are deposited as collateral.
- Borrow
Borrow up to 30–40% LTV in USDC.
- Use & Repay
Use USDC for any purpose. Repay anytime to reclaim your shares.
The Numbers
TERMS & ECONOMICS
| Parameter | Details | Notes |
|---|---|---|
| Loan-to-Value (LTV) | 30–40% | Depends on shares volatility and liquidity |
| Interest Rate | 4–12% APR | Market-driven, floating |
| Collateral | Tokenized shares (ERC-1400/3643) | Must complete Tokenization first |
| Borrowing Asset | USDC | Dollar-pegged stablecoin |
| Personal Guarantee | None | Collateral-only lending |
| Margin Call | No | Self-liquidation at threshold |
| Prepayment Penalty | None | Repay anytime |
| Access | 24/7 instant | Permissionless execution |
Managing Risk
RISK MANAGEMENT
Smart Contract Risk
All protocols are audited by Trail of Bits, OpenZeppelin, and CertiK — multiple independent audits before deployment.
Oracle Risk
Chainlink price feeds plus TWAP mechanisms. Multi-source pricing reduces manipulation risk.
Liquidation Risk
An 85% LTV threshold with a 24-hour grace period. Borrowers can add collateral before liquidation.
Volatility Risk
Diversified collateral pools reduce systemic risk. Conservative LTV limits buffer against price swings.
Insurance
Optional Nexus Mutual coverage available for smart contract risk — an additional protection layer.
Regulatory
Full SEC compliance via the Securitize wrapper. All lending activity sits within a regulated framework.
Proof in the Numbers
CASE STUDY — $500M MARKET CAP CEO
A $25M position (5% of a $500M company) — two very different paths to liquidity.
Traditional Stock Loan
- ✕Max LTV: not available for small-cap stocks
- ✕Loan amount: $0 — unavailable
- ✕Interest rate: 8% APR, when available at all
- ✕Personal guarantee: required
- ✕Rehypothecation: your shares are held in street name and can be sold or lent to short sellers without your knowledge or consent — the very mechanism that fuels attacks on your stock.
DeFi Lending
- ✓Max LTV: 30–40%
- ✓Loan amount: $7.5M–$10M
- ✓Interest rate: 6–12% APR
- ✓Personal guarantee: none
- ✓No rehypothecation — your shares stay in your wallet, never re-lent to anyone.
Where traditional stock loans are often unavailable to small-cap CEOs, DeFi lending unlocks $7.5M–$10M in liquidity — with no personal guarantee and no rehypothecation risk.
The Foundation
BUILT ON TOKENIZATION
Lending protocols require Tokenization as a prerequisite — each weapon builds on the last.
Intelligence (monitors) → Tokenization (secures) → Lending (unlocks) → DEX Listing (trades) → IR & Market Making (defends)
Why Tokenization Is Required
- Lending protocols only accept ERC-1400 / ERC-3643 tokenized shares as collateral
- Traditional shares cannot be deposited into DeFi smart contracts
- Tokenization creates the programmable, blockchain-verified asset that protocols require
- This is why Intelligence + Tokenization is the foundational bundle
The Arsenal · Reading Path
CONTINUE THE ARSENAL
Each weapon builds on the last. Read them in sequence to see how the full Equity Defense Infrastructure fits together.
- 01 Intelligence
- 02 Tokenization
- 03 Lending You are here
- 04 DEX Listing Read next →
Get Started
UNLOCK LIQUIDITY. KEEP YOUR SHARES.
Borrow against your position without selling a single share — no dilution.