Investor overview
Autocallable notes on tokenised stocks. Fully escrowed, permissionless, priced by supply and demand instead of a dealer. Built on Robinhood Chain.
Why now
Note Systems is the missing layer: the note desk for tokenised equities, run by contracts rather than a bank.
The problem
Bank notes today
Tokenised stocks today
Note Systems connects the two: stock holders buy protection and pay coupons; stablecoin holders earn the coupons and take the barrier risk. No bank in between.
The product
One underlying. A fixed calendar of official closes. Three levels. Both legs are escrowed in full at strike, so there is nothing to liquidate and nobody to default.
Coupon
For USDG holders
The series
Example levels. Every series sets its own.
Shield
For stock token holders
Both sides deposit. Coupon rate is set by the ratio of SHIELD to COUPON demand, within a bounded range.
Official close fixes the strike. Matched notional locks, SHIELD prefunds every coupon in USDG, unmatched funds are refundable.
At each scheduled official close: above autocall, the series ends early and pays. Otherwise the coupon accrues.
Barrier holds, COUPON takes cash. Barrier fails, COUPON takes the stock at strike, SHIELD takes the cash.
Every price is an official exchange close read from Chainlink, cross-checked against Pyth within 3%. Any wallet can trigger a step; the first to do so earns a fixed 2 USDG from protocol fees.
The use case
Coupon
Illustrative at 150 bps gross, 15% fee, 26 observations.
Shield
Terms fixed at strike for the life of the series.
Desk
Counterparty of last resort, never a lender.
Figures are examples from the protocol documentation, not forecasts.
Design principle
Escrow identity, checked after every call
quoteEscrow = N_c
+ prefundRemaining
+ claimableQuote
+ refundableQuote
+ accruedFees
Every USDG in the contract is owed to a named party at all times. The same identity holds for stock tokens. It is asserted in every test that moves value and fuzzed as a stateful invariant.
The platform
Live on Robinhood Chain testnet. Screens captured from the production build at note.systems.
Design system built for reading numbers: tabular figures, one accent, dark surfaces, dense tables, keyboard and screen-reader support, 375 px to 1440 px, and every state designed rather than left to chance.
Engineering
Counts from the repository at the time of writing.
Fee design
Sweep to revenue router
90% buyback auction, NOTE streamed to sNOTE stakers
10% Treasury reserves behind the NOTE floor
| Party | Gives | Gets |
|---|---|---|
| COUPON depositor | USDG, barrier risk | Coupons net of fee, principal back or stock at strike |
| SHIELD depositor | Stock tokens, prefunded coupons | Put at strike, keeps upside, stock back |
| Desk depositor | Passive USDG | COUPON returns on the unmatched side |
| Anyone who cranks | One transaction | 2 USDG per successful step |
| sNOTE staker | Staked NOTE, cooldown | 90% of protocol fees as bought-back NOTE |
| Treasury | Nothing | 10% of fees, bond proceeds, Desk returns |
Worked example, 100k USDG series at 150 bps: protocol fees 917 USDG on autocall at observation 3, 6,046 at maturity, 4,696 on a barrier breach. Zero fee is charged on a coupon that is not paid.
$NOTE
Buyback auction
90% of fees buy NOTE on a Dutch curve: price decays from start to floor with a 6 hour half-life, bumps 20% after each fill, never below reserve per token.
P(t) = floor + (start − floor)·2^(−t/6h)
sNOTE staking
ERC-4626 vault. Bought-back NOTE streams to stakers over 7 days. Share price only rises. Cooldown before exit, 7 days by default.
Rewards stream linearly, no cliffs
Bonds
Sell USDG, whitelisted stock tokens or COUPON legs to the Treasury for vested NOTE at a discount. Price rises with debt ratio, falls with Desk utilisation.
Reserve capped at 10M NOTE
Treasury floor
Reserves divided by circulating supply set a redemption floor. NOTE can be redeemed for USDG at the floor, with a small haircut and daily cap.
floor = reserves / circulating
Hard cap 100,000,000 NOTE. Fee flow buys and streams; bonds bring assets in; the floor gives every token a cash value; staking removes float. Volume in notes becomes demand for NOTE without any emissions.
Tokenomics
Genesis distribution, 100M cap. Vesting vault covers team, advisors and a treasury reserve. 40M is unminted and only reachable through protocol mechanisms.
Illustrative economics
Assumptions
Illustrative, not a forecast. Not a promise of returns.
Category
| Bank autocallables | DeFi option vaults | Exotic vaults | Note Systems | |
|---|---|---|---|---|
| Underlying | Stocks, indices | BTC, ETH | Crypto baskets | Tokenised US stocks |
| Counterparty | Issuing bank | Market makers via auction | Whitelisted market makers | The other side of the note, in escrow |
| Pricing | Dealer margin, opaque | Weekly auction to dealers | Dealer quotes | Supply and demand, bounded formula, on-chain |
| Credit risk | Unsecured creditor | Vault and settlement risk | Market maker default | None: both legs prefunded, per series |
| Settlement | Cash, paper | Cash | Cash | Physical, at official closes |
| Access | Accredited, distributors | Anyone | Anyone | Anyone, any size, both sides |
Prior on-chain structured products sold vanilla or basket options to professional market makers. Note Systems is a two-sided, physically settled autocallable on single-stock tokens with no dealer anywhere in the loop.
Security
Done
Next
Status, stated plainly: no third-party audit has been completed. The token is live on mainnet; the note protocol is not. That order is deliberate.
Security methodologyTraction
Vision
Every stock that trades on-chain should have a yield curve and a protection market. Note Systems is the venue where those two prices are discovered, escrowed and settled without a bank.
Token live. Sixteen series on testnet. Documentation and app complete.
Independent audit. Protocol mainnet. First series on live stock tokens.
More underlyings, index and basket notes, rolling series that renew automatically.
Distribution partners, treasury integrations, notes as collateral across the chain.
Roadmap items after Now are plans, not commitments, and depend on audit outcomes and market conditions.
This page is for information only and is not an offer, solicitation or investment advice. NOTE is a utility token of an unaudited protocol under development. Figures marked illustrative are examples, not forecasts. Digital assets can lose all value.