Pairwise

How Pairwise works.

Two participants agree to exchange the relative performance of two Stock Tokens for a fixed term. They post stablecoin collateral; their original Stock Tokens are not transferred into the agreement.

The public app uses synthetic prices and official testnet USDG with no monetary value. It tests contract actions, not a live Stock Token market. No mainnet Pairwise product is deployed.

Agreement terms

Each market contract fixes two feeds and one collateral token. The maker selects notional, equal collateral per side, a term from one hour to 30 days, and a proposal deadline within seven days. The maker posts its collateral on creation. The taker posts the same amount when matching. The term starts on acceptance, and the two fresh start prices are stored then. The maker receives A less B; the taker receives B less A. Original Stock Tokens are not deposited.

Settlement formula

At acceptance, record the initial oracle prices for both assets. At settlement, read valid closing prices. Each asset return is its closing price divided by its initial price, minus one. The raw transfer to Side A is notional multiplied by the difference between A's return and B's return. A positive result pays Side A; a negative result pays Side B. The transfer is capped at the losing side's posted collateral. Each participant receives the remaining balance of its collateral.

Example: if A returns 8 percent and B returns 3 percent on a 1,000 USDG notional, the raw transfer is 50 USDG to Side A, subject to the collateral cap. This is a calculation example, not a price forecast or executable offer.

Price data

Pairwise stores each feed’s start round when the second participant joins; a start reading older than one hour or a pair of start reports more than five minutes apart is rejected. For closing, the caller must identify the first valid round at or after expiry, proven by the immediately preceding round being before expiry. Both closes must arrive within four hours and no more than five minutes apart. An arbitrary later, more favorable round cannot be selected.

Robinhood Chain documentation describes Stock Token Chainlink feeds whose prices already incorporate corporate-action multipliers. The current Chainlink catalogue shows a 24-hour heartbeat and 0.5% deviation threshold for example Stock Token feeds; off-hours and issuer pauses can stop updates entirely. Two independent feeds may therefore publish at different times. The five-minute synchronization bound prevents a payout from two widely separated observations, but may make agreements impossible to start or cause equal refunds on real feeds. It is a test candidate, not a production-validated pricing mechanism. The deployed testnet A/B feeds are synthetic and can be updated by anyone, so test outcomes have no market meaning. See Chainlink's Robinhood feed catalogue.

Limits and exits

The onchain payout is capped at the losing side’s posted collateral. A maker can cancel an unmatched offer at any time; after its deadline anyone can trigger that cancellation and the maker receives its collateral. A matched agreement has no unilateral early exit. If the first post-expiry report arrives too late or the two first closing reports are more than five minutes apart, both sides can recover their own collateral after an eight-day grace period. The same refund applies when a feed never publishes a closing report. After a 30-day settlement deadline, either participant can trigger equal refunds if the agreement remains unresolved. No administrator can withdraw escrow.

Risks

The entire posted collateral may be lost to the counterparty in a real deployment. Price-feed failure, stale data, feed phase changes, corporate actions, smart-contract defects and stablecoin risk can affect settlement or leave funds inaccessible. Stock Tokens are issuer debt securities providing economic exposure, not legal ownership of the underlying shares. Availability is subject to jurisdictional restrictions described by the issuer. This documentation is not investment or legal advice.

Pairwise is unaudited. The current deployment is on public testnet only, with valueless testnet USDG and synthetic feeds. Do not send real assets to any address that claims to be a Pairwise contract.

Deployment status

Robinhood Chain Testnet (chain ID 46630): the current Pairwise test market uses Paxos testnet USDG and synthetic A/B feeds. Its synchronized-price revision has passed local tests and a testnet deployment-code check; a complete onchain lifecycle for this revision remains to be verified. The earlier test market is still available on the explorer, but its offers are not shown in the current app. Real Stock Token feed integration and independent security review remain outstanding. There is no mainnet deployment or audited release.

No Pairwise community token has launched. Tokens with similar names already exist; none should be treated as this project's token without a contract address published here after launch.