Understand
both sides.
A stock has one price. Your perspective on it doesn’t have to.
A market for different perspectives.
Polarity explores a structured exposure model: divide one underlying stock token into a capped Income position and an Upside position. One side gives up the move above a defined price; the other pays a premium for it.
The homepage introduces Polarity; the separate app contains market data, wallet balances, registered series, and auctions. The exposure lab remains a clearly labeled paper environment. On-chain actions are available only after Polarity contracts are deployed and configured.
The economic concept is inspired by Talis. Polarity is an independent implementation with its own identity. It is not affiliated with Talis, Robinhood, or the companies shown.
One unit. Two complementary claims.
At the start of a series, the reference price is P₀. The cap price K is fixed by the chosen cap percentage. At settlement, S is the final underlying price.
K = P₀ × (1 + cap)Income settlement valuemin(S, K)Upside settlement valuemax(S − K, 0)Combined valueIncome + Upside = SAn example with a $250 reference price.
With a 5% cap, K is $262.50. If the underlying settles at $300, Income receives $262.50 of value and Upside receives $37.50. If it settles at $200, Income receives $200 and Upside receives zero.
Those are settlement values, not profits. An Upside buyer subtracts the premium paid. An Income seller adds the premium received when measuring their return against the original underlying value.
Asset-backed settlement.
A collateralized implementation locks one stock-token unit against each matched pair. At a positive settlement price, Income can claim min(1, K/S) token units and Upside can claim max(1 − K/S, 0). The combined claim never exceeds the deposited unit. The on-chain series redeems collateral tokens. The paper lab displays USD-equivalent outcomes without transferring funds.
Recombining the positions.
Before settlement, equal quantities of matching Income and Upside claims can be burned to release the underlying collateral. Claims must match the same asset, cap, and expiry. A secondary-market buyer of Income does not automatically receive an earlier seller’s auction premium.
Make the assumptions visible.
The model approximates the Upside premium as a European call option using the Black–Scholes formula. Income’s modeled entry value is the reference price minus that premium. The two entry values sum to the reference price.
The displayed premium percentage is premium divided by the reference price for the selected duration. It is not APY, not a yield guarantee, and not a forecast. Annualized volatility is a model assumption, not a measured current estimate.
Actual executable prices would depend on counterparties, liquidity, market hours, transaction costs, and the implemented auction or order mechanism. A mathematical model cannot establish that a trade is available.
Practice the full decision.
- Choose an asset and side. Income accepts a cap. Upside pays for gains above it.
- Set the cap, duration, and units. Use the chart to inspect outcomes below, at, and above the cap.
- Review and save. The server stores your paper position and its model inputs.
- Test a settlement price. Record a hypothetical outcome and compare it with your modeled entry cost.
Your paper session uses a private browser cookie. Saved positions persist on the server and are isolated by session. There is no cross-device account recovery. Clearing cookies or changing browsers loses access, so export a CSV if you want a personal copy. Each session supports up to 100 positions.
Paper settlement is manually chosen for scenario analysis and can happen at any time. It does not wait for the chosen model duration or use an oracle. Settled records are immutable in this interface.
Exposure comes with trade-offs.
Income is not principal protection.
The underlying can fall substantially. A premium cushions some of that loss; it does not remove it. The cap limits participation when the asset rises.
Upside can expire worthless.
At or below the cap, settlement value is zero. Even above the cap, the position may lose money until gains exceed the premium paid.
Tokens add their own dependencies.
On-chain positions depend on stock-token transfer rules, issuer and redemption rights, corporate actions, oracle reliability, market hours, chain availability, smart-contract security, and liquidity. Holding a stock token may not confer shareholder rights.
Polarity’s current model is educational. It does not determine eligibility, suitability, or regulatory permission to offer a live financial product.
Market data and token units.
The app discovers active token contracts through Robinhood’s official asset API for chain 4663. REST bid/ask prices are multiplied by the current shares-per-token multiplier to display token-equivalent prices. Quote time, trading halts, and stale observations are shown explicitly. Unavailable data is never replaced with a fictional live quote.
Wallet balances use raw 18-decimal token units. The share-equivalent view applies the on-chain multiplier once. The paper lab continues to use fixed illustrative reference prices so its scenarios remain reproducible.
Split. Auction. Settle. Claim.
A registered series accepts collateral and mints equal Income and Upside ERC-20 quantities. Hold both, or escrow some Upside in a descending-price auction. Each buyer pays the current price directly through the auction contract; proceeds go to the seller, less the fee fixed when that auction contract was deployed. The fee is displayed before purchase. It is not paid again to later holders of Income.
Approvals specify the exact quantity. Purchases set a maximum payment and deadline. Users review the network, contract, amount, and signing wallet before any wallet transaction. A split does not itself produce income: an actual counterparty must buy the Upside.
Expiry pricing.
The implemented oracle uses the last valid Chainlink round at or before expiry, verified against the consecutive round after expiry. It normalizes feed decimals and checks the asset’s oracle pause flag, observation age, and sequencer recovery period. This is a snapshot rule, not a time-weighted average.
Some feeds do not expose consecutive historical rounds or cross aggregator phases at expiry. Those cases fail closed. A later sequencer restart can also prevent a snapshot from being captured. Paired merge stays available until settlement; single-sided holders can remain locked if the oracle cannot validate the boundary. These limitations require further oracle review before production.
Built, tested, awaiting deployment.
Protocol operations checks the configured contracts and lets the factory owner register verified assets and create series. Wallet positions reads real Income/Upside balances and settled collateral claims. Positions in auction escrow are excluded; older series are checked in pages, and failed reads are shown.
- Separate homepage and applicationAvailable
- Canonical asset and price API integrationProvider-dependent
- Browser-wallet connection and balance readsImplemented
- Split, merge, auction, oracle, and claim contractsCompiled & locally tested
- Transaction reviews and exact-amount approvalsImplemented
- Wallet positions and exact claim estimatesImplemented
- Owner registration, series creation, and protocol statusImplemented
- Paper portfolio, scenarios, and CSV exportAvailable
- WalletConnect mobile QR pairingNeeds Reown project ID
- Public-chain deployment and registered seriesNeeds signing wallet
- Independent contract security auditOutstanding
The contract suite includes a curated factory, collateral vault, ERC-20 positions, Dutch auction, and immutable expiry oracle. Local blockchain tests exercise the real compiled bytecode. No public-chain deployment, audit, or liquidity is implied by those tests.
Deployment requires a funded signing wallet and verified collateral, payment token, price-feed, sequencer-feed, expiry, and treasury settings. The deployment tool produces a read-only plan first, checkpoints contract addresses, and resumes from its manifest. Mainnet actions remain disabled unless explicitly enabled in the deployment configuration. Private keys stay in the operator’s local environment; the hosted app never stores them.
Open the application