# Stocks Onchain

### **What Are Stocks On-Chain?**

**Stocks On-Chain** refer to tokenized versions of real-world stocks that exist on blockchain networks, enabling users to trade and invest in these assets through decentralized platforms. Unlike synthetic derivatives, these tokens are directly backed by shares of real companies such as Tesla, Microsoft, and Apple. This innovative approach bridges the gap between traditional finance and decentralized finance (DeFi), allowing users to access the benefits of both worlds.

Tokenizing stocks on-chain offers significant advantages by eliminating intermediaries, reducing settlement times, and providing 24/7 access to markets. As **ERC-20 tokens**, they can be traded on decentralized exchanges (DEXs) and integrated into DeFi protocols, enhancing liquidity and usability.

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### **How Sailing Protocol Pioneers Stocks On-Chain**

Sailing Protocol is transforming how stocks are traded by bringing them into the blockchain space. Users benefit from **fractional ownership**, meaning they can purchase portions of high-value stocks. With Sailing Protocol, investments are no longer limited by the constraints of traditional markets—users can buy and sell these tokenized stocks anytime, anywhere, using their crypto wallets.

* **Integrated with DEXs and Our dApp**: These tokens are **tradable on decentralized exchanges**, with an option to sell directly on Wall Street using our platform at <https://sailingprotocol.org/app>.
* **Fractional Ownership**: Users can buy shares in **smaller units or dollar-based fractions**, enabling accessible investments for everyone.

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### How it works?

* **Real Stocks, Not Derivatives:**\
  Our stock tokens directly represent underlying assets. Each token is backed by real shares, not synthetic derivatives, ensuring that every trade mirrors the actual market value.
* **No Price Feeds Needed:**\
  Unlike other tokenized assets, Sailing Protocol **does not require price oracles or feeds**. All trades use the **real execution price** directly from the stock market, ensuring that users receive the most accurate and transparent value during transactions.
* **Instant Settlement with Minimal Fees:**\
  Thanks to blockchain technology, users can experience **near-instant settlement** (\~1 minute) with fees as low as $0.01. This eliminates the delays and high costs of traditional brokers, where settlements can take up to **2-7 days** and incur transfer fees of \~$30.

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### **Market-Making Bots for Accurate Pricing**

Each token pair listed on DEXs is **supported by market-making bots**. These bots actively manage the liquidity and adjust the token prices in real-time to **match Wall Street’s values**. This ensures that the **trading prices on the DEX accurately reflect the real market execution prices** of the corresponding stocks.

The automated price equalization mechanism ensures transparency, reliability, and minimizes slippage, providing users with a trading experience that mirrors traditional stock markets. Users also benefit from additional liquidity pools that further stabilize prices, offering seamless and accurate trades.


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