MECHANICS

PennyStonk is a launchpad on Solana where every token is filed against a real penny stock, trades on its own bonding curve, and is quoted next to that stock's live price, so the gap between the two is always on display.

1. Filing

Launching here is called a filing, and the form is Form PS-1. The word is borrowed from the stock market: before a company can trade anywhere, someone has to file paperwork describing it. Same idea here, in miniature.

A filing specifies:

After filing, none of these details can be changed.

2. Launch — virtual liquidity

Nobody has to put up money before a token can trade.

The pool opens on two numbers that exist only inside the program — for example 30 SOL and 1,000,000,000 tokens. Nothing was deposited to create them; they are just the starting position of the math. Price comes out of a constant-product rule (x * y = k), the same rule most automated trading pools use, and in practice it behaves simply: every token a buyer takes makes the next one a little more expensive.

• ·Buyers send real SOL and receive tokens. The price climbs.
• ·Sellers hand tokens back and receive SOL. The price falls.
• ·The starting SOL was never real, and it can never be withdrawn.

Which leads to two plain statements:

1. The pool cannot be drained below where it began.
2. The issuer cannot run away with the starting liquidity, because there isn't any to take.

Graduation

When the real SOL raised crosses a threshold (85 SOL), the curve closes:

• ·The SOL raised, plus the tokens still on the curve, move into a standard trading pool
• ·That pool is locked for the duration chosen at filing
• ·From then on the token trades on the open market like any other

3. Pairing — the oracle is a reference, not a control

This is the part to be precise about.

The stock's price is reported by a Chainlink feed — an independent service that reads prices off the market and publishes them on-chain, where the contract can read them. The contract also remembers the peg ratio set at filing. From the stock price and that ratio, two numbers are derived:

peg      = stock price × peg ratio
premium  = (token price / peg) − 1

The market sets the token price, through the curve. The stock price never touches it.

So the token does not track the stock — it trades against it, and the premium measures the distance between the two.

This is the closed-end fund relationship, and it is much older than crypto. A fund can trade above or below the value of what it holds, and the discount gets printed next to the quote. The PREM column on the sheet is the same idea: one number that says whether the market thinks a token is running hot or cold relative to the thing it is named after.

PREM is the product. Everything else is scaffolding for making that number legible.

4. Fees

• ·Filing fee — flat, paid in SOL at filing
• ·Trade fee — charged on curve trades, split between the protocol and the issuer at the rate set at filing

5. Known limitation — the premium has no floor

In a real closed-end fund, the discount has an outer limit, because the fund holds actual assets. In the worst case it sells everything and pays out the proceeds.

PennyStonk tokens hold nothing. There is no redemption, no arbitrage path, and no force pulling the premium back toward zero. A token can sit at −90% of its peg indefinitely and nothing corrects it.

This is not fatal. It does mean the premium is a sentiment indicator, not a valuation, and the interface should never imply otherwise.

Three ways to give it teeth later, if desired:

For now, option three is the honest one. The premium is interesting as a number whether or not anything enforces it. Promising a mechanism that doesn't exist is how a project buys itself a credibility problem later.