Without Blotter
- Lowest on-chain price
- 0.00−16.6% vs oracle
- Price when liquidations stop
- 0.00
- Liquidation waves
- 0
- Bad debt left with lenders
- 0
Built on Robinhood Chain
Absorb the liquidation. Sell at the bell.
A shared liquidation backstop for Stock Token lending. A USDG pool repays the debt when a Stock Token loan is liquidated, keeps the collateral off the market, and sells it only while the real market is open.
The simulator uses fictional funds. It asks for one free signature and never for a transaction.
The problem
Monday, 9:30.
A market that trades 24/7, priced by an oracle that works 24/5. The gap between the two is where liquidations pile up.
- Fri 16:00
The bell rings. The oracle stops.
Stock Tokens keep trading on-chain all weekend. The price feed follows the real market, so it holds Friday’s close until Monday.
- Sat – Sun
Nothing can be liquidated.
News lands, the on-chain price drifts, loans quietly go bad. Against a frozen price every loan still looks healthy, so nobody can act.
- Mon 9:30
One print. Everything at once.
The feed jumps to the opening price. Every lending market sees the same gap in the same block, and every liquidator reaches for the same collateral.
- Mon 9:31
Same pools, same exit.
Seized Stock Tokens are dumped into the same shallow pools. The price sags, the sag pushes more loans under water, and the next wave starts.
Oracle priceOn-chain priceOn-chain price with Blotter
−15%opening gap
15 wavesof liquidations without a backstop
70.9on-chain low, 16.6% under the oracle
Illustration. The weekend drift is drawn; Monday’s two paths are computed by the simulator’s engine on its default scenario. Indexed prices, no market data.
How it works
One pool takes the hit. The market never sees it.
Blotter does what a liquidator does, minus the panic sale. The difference is time: it can afford to wait for the bell.
- 01
Deposit USDG
Depositors fund the Blotter Pool with USDG and receive a transferable ERC-4626 share. Part of the pool always stays in free USDG for withdrawals.
- 02
Repay and seize
When a Stock Token loan becomes liquidatable on a lending market, the pool repays the debt in USDG and takes the collateral with the liquidation bonus. Morpho Blue-style liquidations are permissionless: the market does not have to integrate anything.
- 03
Hold, then sell at the bell
The collateral is not sold. It is warehoused at oracle value and unwound only during real market hours, in tranches capped against pool volume. Never during a halt, never on a stale feed.
Where the net premium goes
The premium is the liquidation bonus, minus what unwinding costs. When it is positive it is split three ways. When it is negative, staked $BLOT absorbs the loss before depositors do.
70%
20%
10%
- Depositors — through the share price
- $BLOT stakers — first-loss capital
- Buy & burn — fixed supply shrinks
Simulator
Run the same Monday twice.
Same loans, same pool, same gap. On the left, liquidators sell into the AMM. On the right, Blotter repays, holds, and sells at the bell.
Scenario
Monday’s print against Friday’s close.
USDG side of the constant-product pool at Friday’s close.
Simulation — no real funds, no transactions. The full simulator adds the lending book, the pool, the first-loss stake and a simulated account.
Open the full simulatorWith Blotter
- Largest price impact
- 0.0%low 83.33
- Debt repaid by the pool
- 019 unwind tranches
- Bad debt left with lenders
- 0
- Depositors’ P&L
- 0
- First-loss stake consumed
- 0%
Guardrails
A backstop needs limits of its own.
Holding other people’s collateral through a gap is a real risk. These rules bound it. They do not remove it.
Inventory caps, per ticker and per sector
The warehouse can only hold so much of one Stock Token, and so much of one sector. Past the cap, the pool stops seizing and ordinary liquidators take over.
No seizure on a stale feed
If the oracle has gone past its heartbeat, the pool does not repay and does not seize. It will not buy collateral at a price nobody has confirmed.
Selling only when the real market is open
Inventory is unwound during regular market hours. Never over the weekend, never during a halt, never while the feed is frozen.
Capped tranches
Each sale is limited to a small percentage of pool volume, so the unwind itself cannot become the price impact it was built to avoid.
USDG always free for withdrawals
A share of the pool is never deployed. Withdrawals are served from it first; anything beyond it exits through a queue as inventory is sold.
Every parameter on-chain
Caps, heartbeats, reserve share, tranche size: all published on-chain, readable by anyone, and any change is visible when it happens.
Token
Coming soon$BLOT — not launched yet.
The token is not live. It will be live soon. Until then there is nothing to buy, nothing to claim and nothing to connect.
There is no contract address yet. Any $BLOT you see today is not ours. The address will be published only on this site and on @BlotterRH.
First-loss staking
Staked $BLOT stands in front of depositors. If an episode ends in a loss, staked $BLOT is written off first; depositors are touched only once the stake is gone.
20% of net premiums
Stakers are paid for carrying that risk: a fifth of the net premium goes to them. It is compensation for possible loss, not a promise of income.
10% buy & burn
A tenth of the net premium buys $BLOT on the market and burns it. No premiums, no burn.
Fixed supply, no admin mint
The supply is fixed at deployment. No role can mint more, for any reason.
No price, no allocation table and no date are published, on purpose: none of them is final. Anyone quoting one is guessing, or selling something else.
FAQ
Straight answers.
The longer versions, with formulas and edge cases, live in the documentation.
Full FAQ in the docs