Stub — Paid on ex-date, not pay date

The gap

A stock goes ex-dividend and the price drops that second. The cash from the issuer arrives weeks later. Onchain, that wait is just idle capital.

How it works

01 Deposit
Put your RWA Stock Tokens in the vault before the ex-date snapshot.
02 Get paid
The dividend lands in your wallet in USDG upfront, minus a published discount based on days to pay date and issuer tier.
03 Redeem
You hold a transferable receipt that redeems 1:1 for your shares once the issuer distributes.

What Stub actually is

Stub is a discount facility for dividends on tokenized equities. When an issuer announces a distribution, the amount and the payment date are already public. The only thing missing is time. Stub buys that receivable from you at a discount and waits in your place.

This is not a new financial instrument. Discounting a known receivable is one of the oldest mechanisms in finance — Stub only removes the intermediary and settles the whole thing onchain.

A worked example

Declared dividend: $0.96 per share
Ex-date: March 14 · Pay date: April 22 (39 days)
Position: 500 Stock Tokens
Gross dividend: $480.00
Discount at 39 days, tier A issuer: 1.6%
Paid to you on March 14: $472.32 USDG
Receipt received: 500 sTOKEN, redeemable 1:1 from April 22

Illustrative figures. The discount is read from the published schedule at deposit time and locked for the life of the position.

Who is on the other side

Holders get the dividend on the day the price adjusts for it, instead of holding an unpaid claim for several weeks. The position stays liquid: the receipt is a transferable ERC-20, so the shares are never trapped.
Underwriters supply the USDG that funds the advances. They earn the discount when the issuer distributes. The return is a function of time to pay date, not of price direction — the vault takes no view on the stock.

What happens if the issuer is late

Late payment — The receipt stays redeemable and the position simply stays open until the distribution lands. Holders are unaffected; underwriters wait longer for the same discount.
Reduced or cancelled distribution — Any shortfall is absorbed first by staked $STUB acting as first-loss capital, then by the underwriter pool. The advance already paid to the holder is never clawed back.
Trading halt or stale oracle — New deposits on the affected token pause automatically. Positions already open are untouched.
Eligibility — Only tokens with an existing distribution history are whitelisted, with a per-token and per-epoch cap on total advances.

Where the discount goes

80% to underwriters supplying USDG
15% to $STUB buy and burn
5% to the protocol treasury

The token has one job — absorb the first loss and reduce the discount for stakers. Nothing else is gated behind it.

No surprises

Published discount schedule. No negotiation.
No liquidations, no margin calls, no rate curve.
Your receipt is an ERC-20. Sell it, lend it, hold it.