Daybreak Litepaper
The biggest companies in the world are really a dozen different businesses fused into one blended price. Daybreak unbundles them: split a tokenized stock into its individual businesses, trade each one on its own, and reassemble a complete set back into the underlying equity token, subject to fees.
The biggest companies stopped being one business
Alphabet is a search engine, a quantum computing company, a cloud platform, a self-driving car company, and an AI lab. SpaceX is a rocket launcher, a satellite internet provider, an AI lab, and a Mars program.
The mega-caps are more like ETFs than single companies at this point. If you think Google Cloud is underpriced while Google Search will lose to AI, there’s nothing precise you can do about it.
Daybreak lets you trade each business unit instead of the company
Daybreak takes a tokenized equity and mints tradeable tokens called partials for defined business segments grounded in company reporting. Each partial may include several brands or activities. Relative top-line revenue ratios establish opening prices; market price discovery determines their relative value afterward. Minting and complete-set redemption connect their combined value to the underlying equity token.
How it works
For each underlying equity token deposited, Daybreak mints 100 tokens of every segment before fees. A complete set contains 100 tokens of every segment. The quantities are fixed; their market prices can change independently.
- Mint: deposit one underlying equity token into escrow and receive 100 tokens of each segment, before applicable fees.
- Redeem: return 100 tokens of every segment to receive one underlying equity token, subject to redemption fees.
- Assisted single-segment redemption: a flash loan acquires the missing segments, assembles and redeems the complete set, and repays the loan and costs in one transaction. The user receives the remaining underlying equity tokens. Execution and output depend on liquidity, prices, and fees. Individual partials can also be bought and sold on the secondary market.
Mint and redeem · the SpaceX set
held 1:1 in escrow
held 1:1 in escrow
A complete set is 100 tokens of every segment, redeemable for 1 SPCX before applicable fees. Mint/redeem arbitrage encourages the combined value to stay near the equity token: traders can mint and sell at a premium, or buy and redeem at a discount, when the difference covers costs.
Price alignment: anyone can mint and sell a set at a premium, or buy and redeem a set at a discount, when the difference covers costs. This arbitrage encourages the combined price to stay near the underlying token. It does not set an individual segment's fair value or guarantee convergence. There are no recurring funding payments.
Holder rights: partials do not provide separate voting rights over a business. Daybreak redemption returns the underlying equity token. Provider redemption into securities or cash is a separate process. Compare xStocks and Backpack terms →
Price discovery: a hybrid PropAMM
For secondary markets, each partial trades in its own pool, denominated in the underlying, and the pools are custom-configured prop-AMMs.
Price discovery.
- Liquidity sits on a log-to-linear curve, so as the asset approaches 0% of the underlying its more difficult to move the price, keeping the price more stable at price ranges that are more prone to volatility.
- All spread from the secondary markets is cycled back into the pools until they reach a TVL of $500k, after which 50% of the spread will cycle back!
Payoff curves.
- A partial’s price rides on two things at once: the whole company (redemption ties a complete set back to one underlying) and the market’s sentiment about that one business (its weight, its share of the company). That makes a partial a sharp, targeted bet. If you buy a partial at 1% of the company and, if it re-weights to 11%, you’ve just 11xed on that partial, while someone holding the whole stock barely noticed. If that growth also pulls the company itself up, you earn that on top.
- Swings are multiplicative, so a partial can drastically increase or decrease, especially at the lower bound, which is why liquidity in the tail is spaced in log-percentage terms rather than dollar terms.
Pricing.
- We place a partial’s liquidity across a grid of ticks with price levels packed tightly around the current price and spread out further away, so the market is granular right where the trading is happening. As the price moves, we move the ticks with it, keeping that fine grid centered on wherever the market is trading.
Liquidity depth
Each partial trades in its own [floor, par] pool. Liquidity per unit price follows this curve, which the tick grid below approximates: deepest toward the floor, keeping the price more stable at the low ranges that are most prone to volatility, and shallow near par.
Liquidity density across the tick grid
the fine grid sits at the live priceOne bar per bin between two ticks; each holds one slice of inventory, so bar height is liquidity per unit price and bar width is the price granularity. A trade fills through the ticks and moves the live price; the reequalize crank then slides the grid so the fine bins re-center around wherever the market is trading.
The SpaceX set: four partials over SPCX
The scopes follow the three reportable segments in SpaceX's Q2 2026 10-Q, plus a residual for everything the filing leaves outside them. See Markets for currently listed partials and their exact contents.
| Partial | Business | Opening weight | What it trades on |
|---|---|---|---|
| SX-LiNK | Connectivity (Starlink, Starshield, kits) | 38% | Subscribers and ARPU; the profit engine |
| SX-LNCH | Space (Falcon, Dragon, Starship) | 24% | Launch cadence, backlog, Starship milestones |
| SX-XAi | AI (Grok, X, data centers) | 30% | Compute buildout and usage; the disclosed loss engine |
| SX-BETS | Other & Corporate (residual) | 8% | Net cash, Bitcoin, debt, everything unallocated |