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 original share at any time.
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 one tokenized equity, starting with SpaceX (SPCX), and mints it into multiple tradeable tokens called partials, one for each business inside the company. Now, you can back Starlink without backing xAI. Each partial trades in its own market, and the primitive that keeps the whole thing bound is a mint and redeem mechanism inspired by ETFs, where the weights are discovered by market consensus.
How it works
A partial is the market’s live weight for one business inside the company, and the partials in a set sum to one full share. Permissionless operations move between the share and its partials.
- Mint: deposit one raw SPCX share into escrow contract and receive one unit of each of the n partials.
- Redeem: hand back one of each partial and receive one raw SPCX share.
- Partial redemptions (i.e. take one partial to redeem for a fraction of the business) coming soon! Currently, a partial can always be bought or sold on the secondary market.
Mint and redeem
held 1:1 in escrow
held 1:1 in escrow
Anyone can mint or redeem at any time, permissionlessly. A complete set is one of each partial and always redeems for exactly 1 SPCX, which anchors the sum of the partials to the share: trade above it and anyone can mint the set to sell, trade below it and anyone can buy the set to redeem.
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 first market: SpaceX, split into five partials
| Partial | Business | Opening weight | What it trades on |
|---|---|---|---|
| SPCXxLINK | Starlink (connectivity) | | Revenue majority, profitable; subscriber growth |
| SPCXxAI | xAI (Grok, models, data centers) | | Compute buildout and usage; the disclosed loss engine |
| SPCXxMARS | Starship and Mars optionality | | Test flights and milestones; a pure narrative book |
| SPCXxLNCH | Launch (Falcon, Dragon, contracts) | | Cadence, backlog, government and commercial awards |
| SPCXxRMC | Residual (other ventures) | | The balance sheet |