01The idea
Stock ownership has always been passive: hold, wait, maybe collect a dividend. Bringing equities on chain changes what ownership can do — a stock token can be deployed into a live market, provide liquidity, and be paid by the people trading it.
The opportunity is not theoretical. Tokenized equities reached roughly $5.50B of market cap by mid-2026, up from $2.23B at the start of the year, and Q1 spot volume alone ($15.10B) exceeded the whole of the previous half-year. Nearly all of that supply sits idle in wallets.
The problem is that the obvious way to put it to work — providing concentrated liquidity yourself — has a bad published record. Across the studied Uniswap v3 cohort, more than half of liquidity providers finished unprofitable once impermanent loss was netted against fees, and impermanent loss ($-260,100,000) outweighed total fee income ($199,300,000). Worse, an academic analysis found no statistical evidence that LPs who repositioned more often did better. Effort was not the missing ingredient. A policy was.
02Vault mechanics
Each vault is a single USDG-quoted market for one stock token. You deposit; the vault issues shares, which are a proportional claim on everything it holds: the deployed liquidity position, uncollected fees and any idle balance. Shares are not a reward token and they do not accrue separately — the assets behind each share grow, so the share is worth more.
- Pair deposit. Supply both assets at the current range ratio. No swap, no slippage; anything beyond the ratio is refunded in the same transaction.
- Single-asset zap. Supply one asset. The zap reads the active range ratio, swaps only the portion required with a 2% minimum-output floor and a 20-minute deadline, deposits both legs and refunds the dust.
- Withdrawal. Burning shares returns your proportional claim on both assets. It does not promise the token mix you deposited, and it does not promise the USD value you deposited.
03The strategy loop
Liquidity is not static. The useful range moves with price, volatility, volume and inventory. The agent runs a four-beat loop over each vault:
- Observe. Spot location within the range, realized volatility, range utilization, inventory skew and fees actually collected.
- Decide. Where liquidity can be productive net of execution cost — a tighter range earns more per dollar but leaves the range sooner.
- Execute. Rebalance, collect and compound through tightly scoped strategy permissions.
- Learn. Measure the outcome on chain and let it inform the next range.
Equity microstructure is why this is built per-asset rather than as one generic farm. A stock token trades 24/7 but the underlying equity does not: volatility clusters around the open, thins overnight, and gaps across earnings. A range sized for a semiconductor name through an earnings week is not the range you would size for an index ETF.
04Guards and permissions
An automated strategy is only as trustworthy as the conditions under which it refuses to act. Guarded actions are blocked when:
- spot deviates more than 1.5% from the 30-minute time-weighted reference;
- the reference is older than 15 minutes;
- a user transaction would breach its own slippage or deadline bound.
Permissions are separated. Users control deposits and their own shares. Rebalancing, compounding, pausing and parameter changes require distinct authorized roles, and no role can move user assets to a third party. Blocked actions are recorded on chain alongside successful ones — a transparency feed with no refusals in it is a feed that is not checking anything.
05Fees
Vaults deploy into the 0.3% fee tier. When fees are collected, 85% remains with the vault and 15% is taken as the strategy fee. The charge applies only to newly collected fees, so the same assets are never charged twice. There is no deposit fee, no withdrawal fee and no management fee on principal.
Displayed APRs are annualized from fees the position has already realized over a trailing window, then reduced by the strategy share. They are an observation, not a forecast. For context, lending USDG on Robinhood Chain has paid around 7% — a vault has to beat that by enough to justify carrying equity price exposure and impermanent loss.
06Integrating
The chain is a standard Arbitrum Orbit L2 — any EVM tool works. Point a client at the public endpoint and read the vault directly:
# Robinhood Chain · chain ID 4663 · gas in ETH
RPC https://rpc.mainnet.chain.robinhood.com
Explorer https://robinhoodchain.blockscout.com
npm i @xobak-protocol/sdk
import { Xobak } from "@xobak-protocol/sdk";
const client = new Xobak({ chainId: 4663 });
const vault = await client.vault("NVDA");
vault.range(); // { lower, upper, poolTick, inRange }
vault.sharePrice(); // USDG per share
vault.quoteZap({ asset: "USDG", amount: 1000n });Vault and zap addresses for every live market are listed in the protocol registry and link straight to Blockscout. Always confirm the address your wallet displays before signing.
07Risk disclosure
These vaults are not savings accounts. Returns are variable and deposits are exposed to loss. The specific risks:
- Market and liquidity risk. Price movement, impermanent loss, time spent out of range and rebalancing costs can outweigh fees earned. A vault can lose value in a month it collected fees.
- Smart-contract risk. Vault, zap, token, pool and chain contracts may contain defects or interact unexpectedly.
- Infrastructure risk. Oracle, keeper, RPC or sequencer disruption can delay or block a guarded action.
- Asset risk.Stock Tokens track a listed stock’s performance but are structured as debt securities — holders receive no shareholder rights, no voting and no direct claim on the company. Depositing into a vault does not change this.
- Strategy and role risk. Strategy decisions can be wrong, and authorized roles are a trust assumption even when scoped.
Nothing here is investment advice. Every performance figure on this site is simulated for demonstration; the market statistics quoted are sourced from published third-party research and are labelled where they appear.