- Its onchain price has to stay close to the real asset.
- There has to be enough depth to trade it at size.
Accurate pricing
A commodity or equity is priced in an external market, not by onchain trading, so an unmanaged pool drifts from the real price and clears at stale values. Arbitrage corrects that drift for crypto-native assets, but not for these, where redemption is gated and liquidity is thin. Price Convergence holds the pool to a configured reference feed instead.
Real depth
An accurate price alone is not enough. Holders need to move size without heavy slippage for the token to work as collateral or as exposure. The vault runs an active concentrated strategy, typically Flagship, that keeps liquidity deep at the tracked price, the management behind any other Arrakis market.
What’s specific to equities
A tokenized equity trades 24/7, but the market it tracks does not. Through nights, weekends, and holidays the real price keeps moving, or gaps on the next open after earnings, while a static pool sits on the last print. That gap is an arbitrage the pool would hand to whoever trades first when the market reopens. Price Convergence realigns the pool to the equity reference as that happens, so the onchain price reflects the live mark rather than the stale one. Because the pool realigns on each rebalance, vaults for assets sensitive to market events are tuned to rebalance more frequently.What’s specific to commodities
A commodity like gold trades almost around the clock on global markets, so the pricing gap is narrower than for equities. The same drift still applies whenever onchain trading lags the spot price, and Price Convergence keeps the pool on the spot feed. Onchain liquidity is the secondary market for the token: it sits alongside whatever redemption or backing process the issuer runs, giving holders a way to trade in and out without going through redemption.How Arrakis fits
The asset runs in a self-custodial vault with Price Convergence configured against the right feed and an active strategy managing depth.| Asset type | Reference source |
|---|---|
| Tokenized commodities (gold and others) | External spot price feed |
| Tokenized equities (single stocks, indices) | Equity price feed |
Considerations
The reference feed is the trust anchor.
The pool tracks whatever the configured feed reports, so the feed’s accuracy and integrity determine how well the token tracks. Choosing the feed is part of the setup.
Tracking follows the rebalance cadence.
The pool realigns on each rebalance, not continuously, so tracking is as tight as the rebalance schedule. Assets sensitive to market events are configured to rebalance more often.
Getting started
Arrakis deploys and configures the vault on the issuer’s behalf, including the feed and strategy, then transfers the vault NFT to the issuer’s multisig. The team keeps custody throughout.FAQ
Does the token have to be redeemable for the underlying to be market-made?
Does the token have to be redeemable for the underlying to be market-made?
No. Arrakis provides the onchain secondary market, deep liquidity to trade the token against its quote, independent of how the issuer handles redemption or backing. Holders get a way to enter and exit onchain whether or not they ever redeem for the physical commodity or the underlying share.
Where does the reference price come from?
Where does the reference price come from?
From a configured external feed: a commodity spot feed or an equity price feed, sourced through providers such as Chainlink or Redstone, or another feed appropriate to the asset. Price Convergence reads it on each rebalance. See Price Convergence for supported feed types.
Does this only cover commodities and equities?
Does this only cover commodities and equities?
No. The same mechanism serves any externally-priced asset, including non-USD (FX) stablecoins and tokenized treasuries. The Price Convergence page has the full set. Tokens that accrue value through yield are covered on Yield-Bearing Assets.