Market-neutral yield on tokenized stocks.
Deposit a Stock Token, earn a 24/7 dollar yield with the price risk hedged out. Lending yield plus perp funding, stacked into one hedged position — in the first environment where both markets run around the clock.
Why this only works on Robinhood Chain
The strategy is old. The venue is what is new.🕐24/7 funding market
Stock perps on Arcus run continuously. TradFi has no weekend funding market for single stocks — this yield source did not exist for retail before.
🧩One settlement layer
A Stock Token is lending collateral one moment and short-hedge margin the next, inside the same L2 with 100ms blocks. No bridging between legs.
💧Day-one liquidity
Uniswap runs the primary AMM and 1inch aggregates routing. The vault sources and unwinds positions against real liquidity, not its own bootstrap.
How it works
One deposit. The protocol runs the hedge underneath.Deposit
Deposit a supported Stock Token into its per-asset vault. Receive an ERC-4626 vault share (hbTOKEN) — your claim on the hedged position plus accrued yield.
Long leg
The Stock Token is supplied to Morpho, earning supply yield and serving as collateral. You keep economic exposure inside the hedge.
Short leg
A short perp of matching notional opens on Arcus, cancelling price exposure. Net delta targets zero — the stock going up or down stops mattering.
Earn & withdraw
Funding plus lending yield accrue in USDG. Redeem anytime: the hedge closes proportionally and you get your Stock Token plus net yield — or the dollar equivalent.
A keeper monitors delta drift, funding sign, and collateral health around the clock. If funding flips against the position, the defensive path unwinds the hedge and parks the deposit in the lending leg only. Rebalance thresholds are public.
Basis Vaults
Yield floats with funding and lending demand — never fixed, never guaranteedArchitecture
Composition, not new infrastructure — every dependency is live on Robinhood Chain today| Layer | Component | Dependency |
|---|---|---|
| Vault | Per-asset ERC-4626 vault, share accounting, deposit and redeem | Own contracts |
| Long leg | Supply Stock Token as collateral, earn supply yield | Morpho |
| Short leg | Short perp of matched notional, funding capture, delta control | Arcus |
| Entry & exit | Source and unwind spot legs at best execution | Uniswap · 1inch |
| Pricing | Mark, delta calc, liquidation-distance checks | Chainlink |
| Keeper | Rebalance, defensive unwind, health monitoring | Bot + onchain guardrails |
| Settlement | All accounting and payouts in dollars | USDG |
Built for v1 vs roadmap
Honest split — nothing on the left overstates● v1 — devnet-first
- Single-asset lending vaultDeposit a Stock Token, earn supply yield, redeem. Stock exposure retained and clearly labelled.
- ERC-4626 share accountingDeposit and withdraw flows, per-asset vault deployment.
- Public rebalance logicTransparent thresholds and keeper logic; read-only dashboard of position health.
- Oracle-sanity guardrailsActions rejected when a Chainlink feed deviates past a bound or goes stale.
- Plain-language risk sheetShipped in the app, not buried in docs.
○ Post-audit, gated on live data
- Automated short-perp hedge on ArcusTrue delta-neutral; gated on perp depth and a funding-rate history long enough to model.
- Multi-asset basket vaultOne-click market-neutral index of the top tokenized names.
- Auto-compoundingUSDG yield compounds; optional payout in the original Stock Token.
- AI-agent interfaceAllocation via the chain Trading MCP under scoped keys.
- Coverage wrapperInsurance on the hedge leg, subject to a provider and real terms.
Risks, stated plainly
Disclosed up front, not hidden in docs⚠️Oracle dependency — the headline risk, not a footnote
Every delta calc, liquidation check, and rebalance leans on a price feed. Oracle manipulation has been a leading DeFi attack vector. The vault uses Chainlink with deviation bounds and staleness checks — and a hard rule: the protocol refuses to act on a feed it cannot trust, rather than acting on a bad price.
📉Funding-rate risk
Funding can turn against the short and erode yield. The defensive path unwinds the hedge and holds the lending leg only. Yield is never fixed or guaranteed.
🌊Perp liquidity
Thin perp books mean unwind cost. The v1 ships without the perp leg precisely because this needs live depth to size correctly.
📜Instrument risk
Stock Tokens are tokenized debt securities, not equity. Issuer and jurisdiction risk sit under the whole product and are disclosed up front.
⛓️Sequencer & L2 risk
A single Robinhood-controlled sequencer orders transactions. Downtime or reordering affects rebalancing. Inherited from the chain, disclosed.
🔐Smart-contract risk
New contracts carry bug risk. The perp leg does not go live with real value until an audit focused on the oracle and hedge paths is complete.
🏛️Positioning
Spot is taken; perps are served. Hoodbasis sits one layer up as a structured product and uses all of them as infrastructure — the yield layer only this chain can support.
What it is not
Not a claim on real shares
Economic exposure only, via tokenized debt securities issued by Robinhood Assets (Jersey) Limited. No equity ownership, voting rights, or dividends. Clearly labelled everywhere.
Not fixed yield
Returns float with perp funding and lending demand. When funding flips, the defensive path holds the lending leg only.
Not a swap or a perp venue
It is a vault that uses Uniswap, 1inch, Morpho and Arcus as infrastructure. One layer up, not a competitor.