# Introducing Sixpence

## 1. Overview

**Sixpence is a decentralized lending protocol built to unlock liquidity and yield from tokenized real-world assets (RWAs), especially** **liquidity from on-chain equities.**

Instead of leaving tokenized stocks idle, Sixpence allows users to:

* Earn yield by supplying on-chain stocks as liquidity
* Borrow against their positions without exiting the market
* Access on-chain stock lending to build more flexible strategies

At its core, Sixpence introduces a new primitive:

> **Turning on-chain equities into productive, yield-generating assets**

## 3. Supply & Borrow

The **Supply and Borrow modules** work together as the core engine of Sixpence, turning on chain assets into flexible and productive capital.

Users begin by supplying tokenized equities as well as stable assets such as USDC and USDT into the protocol, where they become part of the lending market. 

Once supplied, these assets start earning yield from borrowing demand, while users remain fully exposed to their underlying positions. At the same time, supplied assets act as collateral, forming the foundation for accessing liquidity within the system.

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2F5lwclxOh5KSUm9hxejL9%2Fimage.png?alt=media&#x26;token=f199107a-e7be-4da8-883e-4d1017d2ee55" alt=""><figcaption></figcaption></figure>

With collateral in place, users can borrow directly against their positions. Instead of selling their holdings, they can access stable assets or additional on chain equities, allowing them to unlock capital and redeploy it into new opportunities while staying in the market.&#x20;

The amount available to borrow is determined by the value of supplied assets and the protocol’s collateral parameters, ensuring positions remain properly secured.

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2Ffpp7pkca3LMM4X7MeaSE%2Fimage.png?alt=media&#x26;token=6251f9f0-6d8b-47b3-a112-69fa774a8490" alt=""><figcaption></figcaption></figure>

As users manage their positions, they can repay borrowed assets at any time. Repayment reduces outstanding debt, improves the safety of the position, and restores borrowing capacity. Once debt is reduced or fully cleared, users are able to withdraw their supplied assets, returning capital back to their wallet while maintaining full control over their portfolio.

This creates a continuous and flexible cycle where capital moves seamlessly through the system. Supply provides liquidity, borrowing unlocks capital, repayment restores flexibility, and withdrawal returns assets to the user. Rather than remaining idle, assets are constantly in use, adapting to user activity and market demand.

By combining liquidity provision and collateralized borrowing within a single unified framework, Sixpence enables a more efficient on chain financial experience where users can hold, earn, borrow, and redeploy capital within the same system.

***

**Key Value**

* Supply on-chain stocks and stable assets as productive liquidity
* Earn yield from borrowing demand while maintaining full exposure
* Borrow against positions without selling underlying assets
* Access both stablecoins (USDC/USDT) and on-chain equities within the same system
* Enable flexible strategies such as hedging, leverage, and capital redeployment
* Power a self-reinforcing liquidity loop where supply and demand drive yield

***

## 4. Trade & Swap

The **Swap** function allows users to seamlessly exchange assets within the Sixpence ecosystem, enabling capital to be redeployed instantly after borrowing or supplying.

After accessing liquidity through the Borrow module, users can swap between supported assets, including stable assets such as USDC and USDT and on chain equities. This provides a direct path from liquidity to execution, allowing users to reposition their portfolio without leaving the protocol.

Swap plays a key role in making the system efficient and flexible. Instead of withdrawing assets to external platforms for trading, users can adjust their positions within the same environment, reducing friction and improving capital efficiency.

This functionality supports a wide range of use cases. Users can rebalance their portfolio, increase exposure to specific equities, or shift between stable and risk assets based on market conditions. Combined with Supply and Borrow, Swap completes the loop, enabling users to move from liquidity to action in a single, unified workflow.

**Key Value**

* Swap between stable assets and on chain equities within the protocol
* Redeploy borrowed capital instantly without leaving the system
* Adjust positions and rebalance portfolios with minimal friction
* Improve capital efficiency by keeping all actions on chain
* Enable faster response to market changes and opportunities

<figure><img src="https://915115796-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3EQ0uFpO0WhywcZcLMWr%2Fuploads%2FCdG7obXO4YItMEZ60JIm%2Fimage.png?alt=media&#x26;token=c4f49fc2-c225-4a31-9beb-022ba43e37b7" alt=""><figcaption></figcaption></figure>