What if you could hold a stock only while the market is closed, without buying and selling every day? That's the idea behind Isolated Exposure Tokens (IETs), proposed by @0xbeans and The @standard_rsv. Deposit one tokenized share and receive: • OVERNIGHT: exposure from the close to the next open. • SESSION: exposure from the open to the close. Hold both and redeem for one share. Sell one to keep only the exposure you want. Each series has an expiry; exiting one side earlier requires a buyer. A simple example: • A $100 share starts with $50 allocated to each token. • It opens at $110: OVERNIGHT rises to $60. • It closes at $105: SESSION falls to $45. • Together, they're worth $105 at the accounting level. Why it's interesting and why we're at @paboxoxyz also loves it as it align with our off-market lending features. • Could support overnight-only vaults and targeted hedges. • Splits exposure without requiring the issuer to trade the underlying every day. • Gives DeFi another building block, similar in structure to Pendle's split claims. But something that still needs some works and detailed explanations: • Each token starts with roughly 2× exposure at its initial accounting value. • Balances accumulate dollar moves, so they don't reproduce the compounded returns. • Expected overnight gains can already be priced into the token. • Overnight exposure existed before through NightShares ETFs. The vault can't pay $110 if the losing holder owes nothing. Caps, early termination or extra capital could help, but the supplied paper doesn't specify a rule. Promising concept. It needs clear loss rules, reliable price feeds and affordable liquidity before the historical overnight anomaly becomes a new primitive.