Overview

EVE is a protocol on Base that lets holders of Coinbase tokenized stocks (sell side only, for NVDA, AAPL, META and GOOGL) sell while Wall Street is closed, without taking the night price. You hand over the stock after the close, receive 90% of its value in USDC at once, and the rest is settled at the next opening bell, at the opening price.

The problem#

Tokenized stocks trade around the clock. The stocks they represent do not. The New York Stock Exchange is open from 9:30 AM to 4:00 PM New York time on trading days, which is about 19% of the hours in a week. The rest of the time, three things go wrong for anyone who wants to sell.

The price feed stops#

The on-chain price of a tokenized stock comes from a Chainlink feed that follows the real market. When the market closes, the feed stops updating. It keeps reporting the last price it saw, which is the closing price, until the market reopens. Overnight it is frozen; over a weekend it is frozen for more than two days. See Oracles.

Liquidity thins out#

Market makers quote tight prices during the day because they can hedge on the real exchange. At night they cannot hedge, so they quote wider or step away. Decentralized exchange pools for tokenized stocks get shallow.

The night price is a bad price#

With a frozen reference and thin liquidity, a sale at night clears at whatever the pool will bear. A seller who needs to get out on a Saturday pays for it, often with a discount that has nothing to do with the company and everything to do with the clock.

The solution#

bring me your stocks. take your cash now.

EVE does not try to price the stock at night. It waits for the price that matters, the opening price, and bridges the gap with an advance.

1. After the close, on a weeknight, a weekend or a holiday, you deposit tokenized stocks.
2. Immediately, EVE advances 90% of their closing value in USDC. The other 10% is the haircut, held back as a cushion.
3. At the next market open, the final price is set and the balance is paid. The settlement price is the lower of two prices: the first fresh Chainlink price after the open, averaged over 5 to 15 minutes, and the price the pool actually realizes selling the stocks over the first 30 minutes. The fee is deducted from the balance.

The details are in Selling and Settlement formula.

Two sides#

Sellers#

Sellers bring tokenized stocks and leave with USDC: most of it now, the rest in the morning. They pay a fee of 0.25% for a weeknight and 0.75% for a weekend, charged per day across holidays. See Fees.

Depositors#

Depositors put USDC in the pool. The pool pays the advances at night and sells the stocks at the open. Depositors earn the fees sellers pay. Between sessions, idle USDC sits on Morpho. Because the price is fixed at the open, depositors do not take a view on whether a stock goes up or down. They do carry other risks, listed honestly in Risk and safeguards.

What keeps it safe#

• A 10% haircut on every sale by default.
• On earnings nights, the advance is reduced to 75%, or the ticker is blocked.
• Tickers are blocked during corporate actions, when Chainlink feeds freeze.
• Nightly volume is capped to a share of DEX depth.
• A reserve funded by fees covers gaps larger than the haircut.
• Settlement only ever happens on a fresh feed.

Each one is explained, with its limits, in Risk and safeguards.

What EVE is not#

• Not live. Nothing is deployed. This site is a simulation: the simulator uses made-up prices and never sends a transaction.
• Not a loan. You sell your stocks. There is nothing to repay and nothing to liquidate. The advance is the first part of the sale price.
• Not a night-time exchange. EVE does not quote a price at night. It pays an advance against a price that is set in daylight.
• Not two-sided. Version one only buys from sellers.
• Not for US persons. Tokenized stocks are not available to US persons.

How to read these docs#

Every number in these pages is read from one config file in the site's code. When a parameter has not been decided, it carries a pink tag like this one: todo. A value next to that tag is a placeholder used by the simulator, not a commitment.

Worked examples use illustrative prices, and every line in them is computed by the same code the simulator runs.