Two-sided ETH vault
sPONS represents shares of the short side; lPONS represents the long side. Rebalances transfer existing ETH between them.
sPONS NAV = short-side ETH ÷ sPONS supply
A MEME WITH A MECHANISMROBINHOOD CHAIN / $PUNZ
PUNZ — the other side of pons.
A meme with
something underneath.
Trade it with ETH. Pool fees build an onchain short on PONS. Collected PUNZ gets burned. The meme is on top. The mechanism is underneath.
Meet the mechanismETH trading pair3% pool feesPONS backingAutomatic fee-token burns
01 / THE IDEAa little less ordinary.
Volume.
Meet the short.
PUNZ is designed to trade in a normal ETH pool. The difference is what happens to the fees.
THE TRADE
Same familiar trade.
Buy or sell PUNZ through its ETH pool. The pool charges a 3% trading fee. You don’t need to open a separate short position or hold a second token.
THE SHORT MECHANISM RUNS UNDERNEATH.
Two kinds of value. PUNZ has a market price and a separate redemption backing value. They are not the same, and neither is guaranteed to rise.
02 / FLIP THE MARKETINTERACTIVE EXPLAINER
PONS moves.
ETH changes sides.
The vault has two pools of ETH: long and short. A rebalance moves ETH from the losing side to the winning side. Try a price move.
−80%0%+100%
One illustrative rebalance at 1× leverage. No deposits, redemptions, or fees. This models the short vault, not PUNZ’s market price.
sPONS VALUE CHANGE
+20.0%
0.2000 ETH moves from long to short.
LONG 0.8000 ETHSHORT 1.2000 ETH
Total ETH stays the same.2.0000 ETH
The balance matters. A larger long side can amplify a short’s gain when PONS falls. A smaller long side limits it. Returns also depend on the path prices take.
03 / UNDER THE HOODyes, there's actual math.
Small doodle.
Real architecture.
A tokenized short, a fee-harvesting backing contract, and a normal ETH market. No exchange account sits behind the short.
Price from the pool
A Uniswap v3 time-weighted average price references PONS against ETH. It smooths short-term moves, with an oracle window before vault mint and redemption claims settle.
How a TWAP works ↗Market first. Vault fallback.
Backing v2 acquires sPONS through its market when the price is close enough to NAV. Otherwise, ETH follows the vault’s delayed mint-and-claim path.
Backing arrives in the harvest transaction on the market path.
Public functions. Automated calls.
Keepers call rebalance, harvest, and claim. These functions are permissionless: another caller can continue the work. Execution still depends on transactions being submitted.
Collected PUNZ burns automatically during harvest.
Show me the rebalance formula
At 1× leverage, let r = new PONS price ÷ previous PONS price, with both prices measured in ETH.
If PONS falls (r < 1)long → short = long ETH × (1 − r)
If PONS rises (r > 1)short → long = short ETH × (1 − 1/r)
Transfers come from the losing side’s available balance. The simulation assumes both sides have shares. This is not a fixed inverse-price tracker: pool imbalance and sequential rebalances change the result.
04 / WHAT YOU HOLD
Hold it.
Trade it.
Your call.
You don’t have to burn anything yourself to hold PUNZ. The automatic burn and optional redemption are two different things.
Your sPONS = backing held × your PUNZ ÷ outstanding PUNZ
05 / THE READOUTLAUNCH DETAILS PENDING
The numbers.
When they’re real.
The mechanism has been exercised on prototype deployments. Final PUNZ contracts and market links have not been announced here.
Awaiting final launch data. No test prices shown.
PUNZ CONTRACT
View chart ↗Announced at launch.
Final contract verification, vault ownership, liquidity lock details, and token allocation will be published with the launch addresses.
A FEW GOOD QUESTIONS
Wait, so…
Does PUNZ automatically go up if PONS falls?
No. A PONS decline can increase the short-side NAV, depending on pool balances. PUNZ’s market price is set by its own trading. Backing value can also fall if the short loses value.
Does this sell or borrow PONS?
No. The vault transfers ETH between long and short shareholders using the PONS/ETH reference price. Buying short exposure does not itself sell PONS or force its price down.
Is the short on Lighter?
No. It is an onchain perpetual pool with transferable ERC-20 shares. The exposure lives in the ETH vault, rather than an exchange account.
What does the 3% actually do?
The designated trading pool charges a 3% fee. When fees are harvested, ETH-denominated fees acquire sPONS backing, while PUNZ-denominated fees are burned. That is different from saying every fee is immediately converted into ETH or shorts.
What should I understand about the risks?
The long side supplies the short side’s gains, so backing is finite. Oracle lag, manipulation, liquidity, delayed transactions, and smart-contract faults can affect value and exits. The build record describes prototype testing, not an independent audit. A tokenized short can lose most of its value without a conventional liquidation event.