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What CredX is

If you only read one page, read this one. Everything else in these docs is an expansion of what is below.

You own tokenized shares. You want dollars. CredX lends you the dollars and holds the shares as security, so you get the cash without closing the position.

That is the entire idea. The rest is detail about how much you can borrow, what it costs, and what happens if the market moves against you — and those details matter, which is why these docs exist.

The three-minute version#

Robinhood Stock Tokens are ERC-20 tokens on Robinhood Chain that track the price of real equities. They have an on-chain Chainlink price feed, which means a smart contract can value them without trusting anybody’s word for it. That makes them usable as collateral.

CredX is a two-sided market built on that fact. On one side, people deposit USDG — a dollar stablecoin issued by Paxos and backed 1:1 by reserves — into a shared pool and earn interest. On the other side, people deposit stock tokens into a vault and borrow USDG from that pool against them. Borrowers pay interest; lenders receive it; the protocol keeps a slice as a reserve.

We do not create the dollars

Every USDG you borrow came from a lender who chose to put it in the pool. CredX does not mint a stablecoin, does not run a peg, and holds no reserve backing of its own. That is Paxos’ job, and keeping it that way removes an entire category of risk from this protocol.

A concrete example#

Say you hold $10,000 of a tokenized S&P 500 ETF and you need cash for three months. Selling means realising a gain, paying tax on it in most jurisdictions, and buying back later at whatever the price happens to be. Here is the alternative:

$10,000 SPY position, market open

You deposit

15.57 SPYon into the collateral vault

$10,000

Loan-to-value for a broad-market ETF

low volatility, deep liquidity

65%

Credit limit opened

available, not borrowed

$6,500

You actually draw

interest starts only on this

$2,500

Cost at 4.17% APR

$8.69 / month
Shares soldNone

Repay the $2,500 plus accrued interest whenever you like and the vault releases all 15.57 SPYon — including any price appreciation and dividend multiplier they picked up while they sat there.

What makes this different from a normal lending protocol#

Equity collateral does not behave like crypto collateral. It stops trading at 4pm. It gaps on the open. It pays dividends. It splits. Five features exist purely because of that:

  • Stock Credit Line. A revolving limit, not a loan you re-apply for. Undrawn credit costs nothing.
  • Portfolio Collateral. Your loan-to-value is priced on the whole basket, using correlation — so a spread portfolio borrows more than the average of its parts.
  • Smart Deleveraging. Before liquidation is even possible, the protocol sells the smallest slice needed to bring you back to safety, at a 0.30% fee instead of a 5–8% penalty.
  • Market-Hours Risk Mode. Borrowing power tightens when the underlying market is closed, because that is when prices can gap.
  • Borrow Against Dividends. The oracle reads the dividend-adjusted value, so collateral keeps compounding while it backs your debt.

The numbers that define the product#

Max LTV

65%

broad-market ETF, market open

Deleveraging arms

1.10

health factor

Liquidation at

1.00

health factor

Close factor

50%

max debt closed per call

Who this is for#

  • Holders who believe in a position and still need liquidity — for a tax bill, a purchase, or a better opportunity.
  • Lenders who want dollar yield backed by equity collateral with a public price and an automated liquidation engine, rather than an IOU from a trading desk.
  • Liquidators and keepers who want predictable, well-paid work with public health data.

It is not for everyone, and not everywhere

Robinhood Stock Tokens are not offered to residents of the United States, Canada, the United Kingdom or Switzerland. Borrowing against volatile collateral can cost you that collateral entirely. Read Risks & disclosures before you deposit anything.

Where to go next#