Superform Reveals Tokenized Stock Revenue Structure

Superform (UP2) has unveiled a revenue structure that borrows stablecoins using tokenized Nvidia stocks as collateral. While an automatic debt repayment feature has been implemented to reduce the risk of forced liquidation, the possibility of principal loss remains. On the 13th, Superform explained the operation method, investment risks, and automated risk management system of 'SuperStocks' through its official blog. SuperStocks is a product designed for investors to earn additional interest income by using their tokenized stocks as collateral. The SuperNVDA strategy consists of three stages: depositing tokenized Nvidia stocks as collateral on Aave, borrowing USDC equivalent to a portion of the collateral value, and supplying it to the lending market. For example, if USDC is borrowed at an annual rate of 4% and operated at an annual rate of 7%, a total interest spread of 3 percentage points is generated. However, if the stock price drops by 30%, the collateral value decreases, and the loan-to-value ratio (LTV) rises to approximately 42.9%. If the LTV exceeds 40%, it is designed to repay part of the USDC borrowing to lower the ratio to 35%. Superform has automated borrowing, lending, and collateral monitoring through an automated risk management system. Withdrawal requests are possible, but immediate asset return is not guaranteed, and withdrawal processing times may be prolonged in cases of market illiquidity.

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