Decentralized automated market making on stock tokens
Smart LP is decentralized on chain stock token market making. Robinhood Chain hosts real tokenized stocks as ERC-20 tokens, and every swap in their Uniswap V3 pools pays a trading fee to whoever provides the liquidity. Smart LP vaults let anyone become that market maker: deposit a stock token like NVDA, GME, TSLA, or AAPL, and an immutable onchain vault places and manages the liquidity for you. The fees from every trade compound back into your position. Open the live desk at Smart LP Volatility Farming.
What is decentralized automated market making?
On a traditional exchange, market makers quote both sides of the order book and earn the spread. On a decentralized exchange, the same job is done by liquidity providers in an automated market maker (AMM) pool: they deposit two assets, traders swap against the pool, and the pool charges a fee on every swap. Decentralized automated market making means running that role through smart contracts instead of a trading desk. Smart LP automates the hard parts, including concentrated liquidity ranges, fee collection, and compounding, inside vaults whose rules are fixed at deploy and can never be changed.
Why market make stock tokens?
Robinhood tokenized stocks trade on chain around the clock, including hours when the underlying stock market is closed. That constant trading is exactly what a market maker earns from: more volume and more volatility mean more fee income. Volatility farming is the core idea behind Smart LP. Instead of only hoping a stock token goes up, your deposit earns from the price moving at all, in either direction. Every vault sits on a canonical Uniswap V3 pool, so the fees are real swap fees paid by real traders.
Three strategies
- Single sided volatility farming · deposit only the stock token. The vault places it as an ask ladder above the current price, so the token sells gradually into strength and the proceeds earn fees. No second token needed to start.
- Full range · the most conservative option. Liquidity spans the whole price curve, mirrors a classic AMM position, and never needs a rebalance.
- Balanced band · a concentrated band around the current price for higher fee capture. More aggressive, with more impermanent loss if the price trends away, and the vault recenters the band when the market moves far enough for a sustained period.
What you can deposit
Over 160 vaults are live across the Robinhood stock token lineup, including NVDA, TSLA, GME, AAPL, MSFT, AMD, PLTR, AMZN, SLV, COST, and the SPY and QQQ index tokens, plus WETH/USDG and the most traded Robinhood Chain community tokens. You can deposit the stock token itself, the quote token (USDG or ETH), or both at once; single token deposits are zapped to the pool ratio inside the transaction. Buy the underlying stock tokens first on the Stonk Exchange if you need them.
Safety: immutable vaults, exits always open
- The vaults are part of the Safety Deposit Box. Vault rules are fixed at deploy: no admin can sweep pool tokens, take your position, or block a withdrawal. Burn your shares and exit any time, even while deposits are paused.
- Onchain price guards compare the pool against its own time weighted average price and the Chainlink feed. When the market is moving too fast, deposits pause and reopen on their own; withdrawals keep working the whole time.
- A 10% performance fee applies to net collected trading fees only, never principal, split between the StockBooster and $STONKBROKER buybacks. A 0.1% withdraw amount stays in the vault and accrues to remaining holders, which deters churn.
- The Smart LP contracts carry a Hashlock Certified audit and every vault is source verified on the Robinhood Chain explorer.
How to start market making
- Connect a Web3 wallet or email wallet to Robinhood Chain (chain ID 4663). New to the chain? Read the Robinhood Chain guide.
- Open the Smart LP desk, pick a stock token market, and choose a strategy.
- Deposit. Fees start accruing with the next swap in the pool, and the desk shows your live position value, earnings, and vault automation history.
StonkBroker NFT holders can also stake straight from their broker token bound wallets, so stock tokens earned from Clock In rounds can go to work as market making liquidity without ever leaving the broker wallet.
