Using CredX
Collateral & stock tokens
What you are depositing, what the protocol thinks it is worth, and why some assets are on the list while others never will be.
A Robinhood Stock Token gives you the economic exposure of a share. It does not give you the share.
What you actually hold#
Robinhood Stock Tokens are ERC-20 tokens on Robinhood Chain that track the price of a real underlying equity. Legally they are tokenized debt securities — an obligation that pays out according to the performance of the underlying, not a registered ownership stake in the company.
In practice this means you get price exposure, dividend economics and split adjustments. It does not mean voting rights, a share register entry, or a direct claim on the company. CredX does not change any of that in either direction: your token goes into a vault and comes back out exactly as it was.
Why the tokens work as collateral at all
Two properties make it possible. They are ERC-20, so a contract can hold and transfer them. And they have an on-chain Chainlink price feed, so a contract can value them without trusting a human. Take away either one and none of this is buildable.
Loan-to-value, in plain terms#
LTV is the fraction of your collateral’s value that the protocol is willing to lend against. A 65% LTV on $10,000 of collateral means a $6,500 limit. The remaining 35% is not a fee — it is the buffer that absorbs price moves before anybody is at risk.
A second number sits above it: the liquidation threshold. LTV is where you may borrow to; the threshold is where you become liquidatable. The gap between them is the room you have to be wrong.
SPYon: LTV 65% → you may borrow up to 65% liquidation threshold 75% → trouble begins here
Borrow the full 65% and the collateral can fall about 13% before health reaches 1. Borrow half of it and that room roughly doubles.
The listed assets#
| Asset | LTV | Liq. threshold | Liquidator bonus | Volatility |
|---|---|---|---|---|
| SPYonSPY | 65% | 75% | 5.0% | 16% |
| QQQonQQQ | 62% | 73% | 5.5% | 21% |
| AAPLonAAPL | 55% | 68% | 6.0% | 26% |
| MSFTonMSFT | 55% | 68% | 6.0% | 24% |
| NVDAonNVDA | 40% | 55% | 8.0% | 48% |
| TSLAonTSLA | 40% | 55% | 8.0% | 55% |
| KOonKO | 58% | 70% | 5.5% | 15% |
| RIVNonRIVN | — | — | 10.0% | 78% |
Why the list is short on purpose
Every additional listing adds a way for the protocol to take a loss. Launch coverage is one broad ETF and a handful of mega-caps because those are the assets where a liquidation can actually clear without moving the price against the pool.
Small-caps are not supported, and are not on the roadmap
A name with 70%+ annualised volatility and a thin on-chain book cannot be liquidated cleanly. The liquidator sells into no bid, the pool eats the difference, and every lender pays for one borrower’s position. RIVNon appears in the table with no LTV for exactly this reason — it is listed as visible, not as collateral.
How the asset classes differ#
| Class | Example | Typical LTV | Why |
|---|---|---|---|
| Broad-market ETF | SPYon, QQQon | 62–65% | Hundreds of holdings, low single-name risk, deepest liquidity |
| Mega-cap | AAPLon, MSFTon, KOon | 55–58% | Single-name risk, but large and liquid |
| Volatile tech | NVDAon, TSLAon | 40% | Can move 10% in a session; the buffer has to absorb that |
| Small-cap | — | Not supported | Cannot be liquidated without slippage |
Dividends and splits keep reaching you#
Robinhood reflects dividends and stock splits through a multiplier on the token rather than by changing your balance. A KO token that has paid a year of dividends does not become 1.03 tokens — it becomes one token worth 1.0231× as much.
This matters enormously for a lending protocol. Read the raw token balance and you undercount the collateral. CredX reads the multiplier-adjusted oracle value, so the economics land where they should: in your borrowing power.
400 KOon posted as collateral, one year in
Raw balance × spot price
what a naive integration would see
Multiplier applied
~2.9% trailing dividend yield
Multiplier-adjusted value
Extra credit line at 58% LTV
Your collateral compounds whether or not you have drawn against it. That is the closest thing to a free lunch in this product, and it comes from Robinhood's token design, not from us.
Depositing more than one asset#
The risk engine prices the basket, not the tokens. It computes the correlation-adjusted volatility of everything you hold and grants LTV against that. Because assets do not all fall at once, that number is lower than the value-weighted average — and the difference comes back to you as borrowing power.
portfolio σ = √( Σᵢ Σⱼ wᵢ wⱼ σᵢ σⱼ ρᵢⱼ ) versus naive σ = Σᵢ wᵢ σᵢ
For a 40/30/20/10 basket across an ETF, a volatile tech name and two mega-caps, σ falls from about 27.6% to 23.1% — worth roughly 3.5 extra points of LTV.
- The credit is capped at +6 percentage points, no matter how well spread the basket is.
- It scales with the number of legs, so two assets earn much less than four.
- A single-asset basket earns nothing — there is nothing to diversify against.
- It can never push your LTV above your weighted liquidation threshold minus 3pp.
Withdrawing collateral#
With no debt, withdrawal is immediate and unconditional. With debt outstanding, you can withdraw anything that leaves your health factor above 1 — the app previews the resulting number before you confirm and blocks the transaction outright if it would make you liquidatable.
Open the collateral vault
See per-asset parameters, the pairwise correlation matrix and the full LTV derivation for your own basket.
Next: how the borrowing side works.