How Equity Protocol works.

Overview

There are three things in play. Robinhood issues stock tokens on Robinhood Chain, each backed one to one by the share. Uniswap v4 runs the pools where those tokens trade against USDG, around the clock. Equity Protocol is one small contract that takes your USDG and, in a single transaction, opens your own position in one of those pools.

Our custom v4 smart contract

What happens when you sign

You choose an amount of USDG, a stock and a price range, then sign. The whole deposit is a single transaction. The contract pulls the USDG, sends the 1 percent fee to the published wallet, swaps part of the rest for the stock token on the pool at the pool price, and puts the stock token and the remaining USDG into that pool as one position minted to your wallet. Whatever the pool could not use is swept back to you in the same transaction.

How much becomes stock

It depends on your range. A symmetric range around the current price needs roughly half stock, half USDG. A range set above the price needs mostly USDG; a range set below needs mostly stock. The app computes the split from the range and quotes the swap on the chain before you sign, so the numbers you see are the numbers you get, within the slippage you allow.

Your three limits

Every deposit carries a minimum amount of stock out of the swap, a price band the pool must be inside right before minting, and a minimum liquidity for the position. All three come from your slippage setting. If the market moves past any of them while your transaction is in flight, the whole thing reverts and nothing leaves your wallet.

Your transaction also carries the fee you were quoted as a ceiling: if the owner raised the fee after your quote, it reverts rather than charging more. It carries a deadline, and it reverts while the contract is paused or if it would exceed the per-transaction or daily cap. The wallet asks once to approve exactly the amount you are depositing and once for the transaction itself; the app never leaves a standing allowance.

Ranges

Ranges snap to the pool's tick spacing, so the exact edges can differ slightly from the preset. The app shows the real edges before you sign.

Positions and fees

Trading fees

Each pool has a fee tier (0.2 to 1 percent depending on the stock; the app shows it). Every swap pays that fee to the positions whose range covers the price at the time. Fees accumulate inside your position; Collect moves them to your wallet. Equity Protocol takes none of them.

In range, out of range

Between the two prices of your range the position holds both tokens and earns. Outside it, the position holds only one token and earns nothing until the price returns. Nothing is liquidated and nothing expires; you can exit or reopen at a new range whenever you like.

Collect and exit

Both talk to Uniswap's PositionManager directly, because the NFT is yours. Exit returns the stock token and the USDG the position holds, plus any uncollected fees. You can also do both on Uniswap's own app; Equity Protocol is not required for either.

The protocol fee

One percent of the USDG you deposit, taken once, sent to the wallet published in the Contracts section below. The contract cannot charge more than 1 percent; that limit is in its code. There is no exit fee and no fee on what you earn.

Risks

Price moves

A liquidity position is not the same as holding the two tokens. When the stock moves a lot in either direction, the position is worth less than holding would have been; the gap grows with the size of the move and shrinks with the width of the range. The app shows the gap for a 25 percent move before you sign. Fees have to cover that gap for the position to come out ahead. This can lose money.

Weekends and the price feed

The pool trades every day. The reference price feed updates only while US markets are open. When the app says "market closed", the feed is showing the last close while the pool may already be pricing news; expect the two to drift apart until the open.

The issuer

Robinhood controls its stock tokens: it can pause them, block addresses, and adjust the multiplier for dividends and splits. A pause stops every transfer, including exits, until it is lifted. This is the price of real backing, and it is not something Equity Protocol can override.

Our contract

It has no independent audit, and none is scheduled. It is small, holds nothing between transactions, and has been tested against a copy of the real chain: every launch pool, random amounts and ranges, invariant runs, two static analyzers and an adversarial review whose findings were fixed and covered by tests. Its source is not published on the explorer, by the owner's decision; the bytecode is public. Launch caps limit how much can pass through it per transaction and per 24-hour window; both are read from the contract and shown in the app.

Robinhood stock tokens

Stock tokens are issued by Robinhood Assets (Jersey) Limited as debt securities that track the market value of the underlying share, which is held one to one by a custodian. Holders get the price exposure, not the share itself and not voting rights. Read Robinhood's terms and prospectus for what they represent.

Dividends and splits

The tokens do not change balance for dividends or splits. Instead each token carries a multiplier that the issuer updates; dividends are reinvested and raise the multiplier. Your raw token count in a position never changes on its own.

Where they are offered

Robinhood decides. It states that its stock tokens are not offered to persons in the United States, Canada, the United Kingdom, Switzerland or the UAE. That list is Robinhood's and may change. Equity Protocol is compatible with Robinhood Chain and is not affiliated with, endorsed by or sponsored by Robinhood.

The $EQUITY token

$EQUITY rewards the people who keep the listed pools liquid. Positions that stay open and in range earn it, weighted by the liquidity they provide, once the reward contract is live. The reward contract watches positions; it never takes custody of them.

Supply and the share reserved for rewards are published with the reward contract, not before. No rate is quoted anywhere on this site, and $EQUITY is not a yield product.

Contracts

Robinhood Chain mainnet: chain id 4663, explorer robinhoodchain.blockscout.com. Eleven of the thirteen stocks have a reference price feed; HIMS and NFLX do not, so for those the app shows the pool's own price and says so. The full stock-token registry is at docs.robinhood.com/chain/contracts.

FAQ

Are these real shares?

They are Robinhood stock tokens: ERC-20 tokens backed one to one by the share, held by a custodian. Price exposure, not voting rights.

Can I lose money?

Yes. A position can be worth less than holding the two tokens when the stock moves a lot, and fees may not cover the gap.

Who holds my tokens?

You. The position is a Uniswap v4 NFT in your wallet. Our contract holds nothing between transactions.

Can I exit without Equity Protocol?

Yes. The position works on Uniswap's own app. Collect and exit never depend on our contract.

What happens at the weekend?

The pool keeps trading; the price feed rests. The app says when the feed is stale.

Where does the fee go?

One percent of the deposit, once, to the wallet published in the Contracts section. No exit fee.

Can I deposit ETH?

Yes. Pick ETH in step 02. It is swapped to USDG on the ETH/USDG Uniswap pool inside your own wallet first, then deposited through our custom v4 smart contract: three wallet prompts, the swap, the approval, then the deposit. The contract itself only ever takes USDG.

Which regions can use it?

Robinhood decides where its stock tokens are offered; see the section above.

Glossary

Stock token

A token issued by Robinhood that tracks one listed share, backed one to one. Thirteen are listed at launch.

Our custom v4 smart contract

One transaction that turns USDG into a pool position. Fee, swap, mint, sweep.

Position

Your share of a Uniswap v4 pool between two prices, held as an NFT in your wallet.

Range

The two prices between which a position holds both tokens and earns fees.

Fee tier

The share of every swap paid to liquidity providers. Between 0.2 and 1 percent depending on the pool; the app shows the one you are entering.

Slippage

How far the price may move against you before your transaction reverts.

Multiplier

The issuer's scale factor for dividends and splits. Raw token balances never change.

USDG

Global Dollar, the native dollar on Robinhood Chain.