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Protocol Comparison

Continuum vs xStocks: Synthetic vs Tokenized Stocks on Solana

Comparing price-tracking synthetics to 1:1 asset-backed tokenized equities

A detailed comparison of two approaches to stock exposure on Solana: Continuum's synthetic L/S tokens versus xStocks' regulated custodian-backed tokenized equities. Understand the tradeoffs between permissionless synthetics and regulated RWAs.

Continuum

Solana

Synthetic Asset Protocol (L/S Tokens)

Backing Model
Stablecoin collateral + oraclegood
Regulatory Status
Permissionless DeFigood
KYC Required
Noexcellent
Geographic Access
Global, unrestrictedexcellent
Shareholder Rights
No (price exposure only)fair
Dividends
Nofair
Short Exposure
Native (S tokens)excellent
DeFi Composability
Full SPL standardexcellent
Collateral for Lending
Yes, any protocolexcellent
Trading Hours
24/7excellent

Pros

  • No KYC or geographic restrictions
  • Native short exposure via S tokens
  • Full DeFi composability across Solana
  • Use as collateral on any lending protocol

Cons

  • No actual stock ownership
  • No dividends or voting rights
  • Relies on oracle accuracy

xStocks

Solana

Tokenized RWA (1:1 Backed)

Backing Model
1:1 underlying asset with custodianexcellent
Regulatory Status
Regulated custodiangood
KYC Required
Yesfair
Geographic Access
Non-US onlyfair
Shareholder Rights
No (price exposure)fair
Dividends
No (price tracking only)fair
Short Exposure
Not nativefair
DeFi Composability
Limited integrationsfair
Collateral for Lending
Select protocols onlyfair
Trading Hours
24/7excellent

Pros

  • Backed 1:1 by actual underlying stocks
  • Regulated custodian provides security
  • Real asset backing for peace of mind
  • Fractional ownership of expensive stocks

Cons

  • KYC required for all users
  • US residents excluded
  • No native short exposure

Our Verdict

Continuum and xStocks serve different user needs. xStocks offers real asset backing with regulatory compliance but requires KYC and excludes US users. Continuum provides permissionless, globally accessible synthetic exposure with native shorting and full DeFi composability. For DeFi-native users who want to use positions as collateral on lending protocols or need short exposure, Continuum is the better choice. For users who prefer regulated 1:1 backing and don't need DeFi composability, xStocks is a solid option.

Which Should You Use?

US residents seeking stock exposure

Continuum

xStocks excludes US users; Continuum has no geographic restrictions

Using stock exposure as lending collateral

Continuum

L tokens work as collateral on any Solana lending protocol (Kamino, Marginfi, etc.)

Shorting stocks on-chain

Continuum

Native S tokens provide short exposure; xStocks has no native short mechanism

Preference for regulated backing

xStocks

1:1 backing by regulated custodian provides traditional finance assurances

Leveraged stock positions via DeFi

Continuum

Deposit L tokens as collateral, borrow USDC, loop for leverage - full composability

Non-US users wanting asset-backed tokens

xStocks

Real underlying assets held by regulated custodian

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