Steakhouse is onboarding six Robinhood Stock Tokens as collateral in the USDG vault behind Robinhood Earn, built on Morpho.
Launched in early July, the vault behind Robinhood Earn has steadily grown into the largest vault on Morpho. It currently holds over $500 million in non-custodial user deposits, supporting a credit market worth over $1 billion.
Onboarding Stock Tokens into the Robinhood Earn vault
The first batch of onboarded Stock Tokens brings together four of the Magnificent Seven, the S&P 500 index and SpaceX.
Nvidia (NVDA): 62.5% LLTV
SpaceX (SPCX): 62.5% LLTV
Apple (AAPL): 62.5% LLTV
Tesla (TSLA): 62.5% LLTV
Alphabet Class A (GOOGL): 77% LLTV
SPDR S&P 500 ETF Trust (SPY): 77% LLTV
Steakhouse designs and maintains the vault’s curation policy, defining and monitoring the parameters the vault operates within. To onboard these assets, we assessed each stock token against our multi-layer risk rating framework. We selected them on criteria including DEX liquidity, since DEXs are where liquidations execute, and trading volatility, which we use as a proxy for borrowing demand.
Initial supply caps are set for an observation period, allowing integrators to build on these markets while demand develops. Caps may be revised as liquidity and demand grow.
The future of credit markets
Onchain credit markets have historically been anchored to crypto-backed collateral. While that was sufficient to build the initial infrastructure, it tied growth to one asset class and one borrower base. To further scale, onchain lending markets have to natively support the assets people and institutions hold most.
The infrastructure has already come a long way, but pool-based lending still holds back the expansion into T-bills, tokenized money market funds, and private credit, as the liquidity drag of keeping funds available for withdrawals widens onchain spreads. Stock Tokens, on the other hand, have an immediate use case within onchain finance. Onchain lending markets can offer borrowers more flexibility and lower costs.