Vaults
One deposit becomes a managed liquidity position in a tokenized stock market. Fees come in, get compounded, and your shares grow. Here is exactly what happens and what you hold.
What a vault is
A vault is a contract that holds a concentrated-liquidity position in one Uniswap V3 pool on Robinhood Chain, for example AAPL / USDG. Depositors receive vault shares (an ERC-4626 style token) representing their part of that position. The vault does the liquidity management; depositors do nothing after depositing.
The loop
- Deposit. You deposit USDG. The vault swaps roughly half into the stock token so it can provide two-sided liquidity, and mints your shares at the current share price.
- Provide liquidity. The vault places the capital in a price range around the current price. Inside that range, every trade against the pool pays a fee to the position.
- Earn the fees. Fees accrue in both assets, around the clock, including the hours NYSE is closed.
- Compound. On a schedule, and whenever it rebalances, the vault collects fees and adds them back to the position. Share price rises; no action needed from you.
- Withdraw. Burn shares to receive your part of the position, in USDG by default. Withdrawals are possible at any time; see liquidity limits below.
Range management
Concentrated liquidity earns more fees the tighter the range, but a tight range goes out of range faster when price moves. Out of range, the position holds only one asset and earns nothing until it is rebalanced. The vault manages this trade-off with a rules-based policy:
- Regular session (09:30 to 16:00 New York, trading days): a tighter range, since the tokenized price tracks the exchange print closely.
- Off-hours and weekends: a wider range. There is no exchange print to anchor to, spreads widen, and the open can gap. The wider range keeps the position in range through the gap; the wider spreads mean each trade pays more.
- Around earnings: the widest range, applied from the close before the announcement through the following open.
- Rebalance: when price leaves the range, the vault re-centers. Rebalancing realises the position’s current asset mix; it is not free and the cost is reported.
What you are exposed to
A vault position is not a stablecoin deposit. Roughly half of it is the stock token, so if the stock falls your position falls with it, partly. If the stock rises sharply the position converts toward USDG and you capture less of the upside than holding the stock outright. This is the standard behaviour of a liquidity position and it is the reason fees exist. Every vault shows its current asset mix and an estimate of this effect. Details in the Risk framework.
Share price and accounting
Share price equals the position’s value in USDG, priced at the Chainlink feed rather than the pool spot price, divided by shares outstanding. Using the feed prevents a manipulated pool price from moving the share price. Fees earned raise it; adverse price movement lowers it.
Withdrawals and liquidity
A withdrawal removes liquidity from the pool and, if you asked for USDG, swaps the stock-token half. Large withdrawals in a thin pool move the price against you; the vault shows the expected slippage before you confirm and lets you take the two assets as they are instead of swapping.
Baskets
A basket vault holds positions in several markets at fixed weights, for example a Mag 7 basket. Deposits are split across the underlying positions; fees and exposure are the weighted sum. Baskets rebalance weights on a schedule.