Full upside.
A floor on
the downside.

A preferred token is a new class of onchain instrument that gives holders backed ownership: enforceable claims, defined when the token is issued, backed by something real and enforced by code, instead of the bare spot exposure a normal common token gives you. PGT is the first preferred token. It delivers backed ownership through collateral: a floor under your downside, full upside, and a fixed term. PGT is one instance of the category. Future preferred tokens will deliver backed ownership through other mechanisms.

The Clarity Act is the trading stack getting its rulebook: who regulates a token, what must be disclosed, and which venue it trades on. It is the most a friendly legal system can do for crypto, and notice what the most turns out to be: it sorts and it discloses. It never makes a token into ownership.

Its clean endpoint for a crypto-native asset is digital commodity: the legal certification that no one is in charge and no one is accountable to you. The bill that's supposed to protect holders works by proving the holder has no counterparty. That's not a fix for phantom ownership. It's the federal confirmation that the legal stack stops here, exactly where the ownership stack has to begin.

Tokenized equities are useful for assets the legal world already knows how to own. They move Apple, treasuries, or real estate onto crypto rails. They do not solve ownership for crypto-native assets.

A Protected Growth Token is an on-chain instrument that gives you downside protection and full upside exposure to a project's token over a fixed term. If the token drops below a set floor at maturity, you get your principal back. If it goes up, you capture the full upside.

Your deposit and half the project's tokens form a full-range DEX liquidity position. The LP value acts as your protection buffer. As long as the token doesn't fall below the floor (up to 75%), the LP is large enough to return your full principal at maturity.

You capture the full upside. If the token rises 50%, your $1,000 deposit becomes $1,500 at maturity.

All collateral is locked in immutable smart contracts from day one. The project cannot withdraw or modify terms mid-term. Settlement uses a 72-hour VWAP — no counterparty risk, no custody.

Yes. PGTs are standard ERC-20 tokens and freely transferable. Trade or sell on secondary markets whenever you want liquidity. The new holder redeems at maturity in your place.

PGTs reduce but don't eliminate risk.

Smart contract risk. A bug in the contracts could result in loss of funds.

Protocol risk. If Exchequer is exploited, redemptions could be affected. Contracts are designed to be non-custodial and function independently of the team.

Term risk. Protection applies for a defined period. Users can exit early via early redemption for a fee, but doing so means giving up the remaining protection.

Price risk. If the token price falls below the protection floor, the collateral may not fully cover the protected value. Protection reduces downside exposure but does not guarantee full recovery in extreme price scenarios.

Oracle risk. Exchequer uses a TWAP-based oracle for each DEX that the collateral sits on. Redemption values use TWAP windows, not spot prices vulnerable to manipulation. Circuit breakers detect suspected price manipulation around redemption and trigger safety checks before large redemptions process.