3. How to DLMM Tokenized Stocks on the Robinhood Chain

DLMM Clan is an independent DeFi liquidity-provider education community for EVM chains, distinct from Meteora, which is a DLMM protocol on Solana. In this walkthrough, CryptoCroco shows the full process of trading tokenized stocks on the Robinhood Chain using DLMM. He bridges funds from Base to the Robinhood Chain with Relay, explains that USDG is the chain's native stablecoin, and finds which tokenized stocks are tradable by filtering Uniswap for Robinhood-chain listings, tokenized by Robinhood itself. He then picks SpaceX (SPCX) using its market-cap-to-volume ratio and starts building a DLMM position on the dip, framing tokenized equities as a big step toward democratizing access to stocks on-chain.

Intro: DLMM stocks on the Robinhood Chain

How to DLMM stocks on the Robinhood Chain. In this channel I'm CryptoCroco, and I am exploring Dynamic Liquidity Market Making, the best way to trade tokens in DeFi. So in today's video I want to start out with tokens I have on Base. And the goal is, at the end, to open a position for stocks on the Robinhood Chain.

So I'm going to show you how I bridge my funds over, as well as how to open up my position, and what I generally think about being able to finally DLMM stocks. I have been waiting for this for a long time.

The material presented in this tutorial and accompanying presentation is intended for informational purposes only and should not be interpreted as financial advice. Any investment decisions or positions you take are solely at your own risk.

The chains SectorOne supports

Let's get started. So here, right now, if you're on SectorOne, you can see the three chains they support right now: Base, MegaETH and Robinhood. So the two really important ones to my mind are Base and the Robinhood Chain. These are both very vibrant chains, especially Robinhood right now. But never underestimate Base. It's been there for a long time and it is a huge Layer 2.

But today I'm excited because Robinhood is supporting stocks, and that is huge for me. If I wanted to go from crypto to trading stocks, I always needed to go out of DeFi to a centralized exchange, and then trade stocks the traditional way. And I always found that quite cumbersome, because it never gave me the freedom and the way to trade as I can do it using Dynamic Liquidity Market Makers like SectorOne.

What's already trading on the Robinhood Chain

If you're now in SectorOne, you can select the Robinhood Chain, and then you can see the pools already being opened. I could open any type of pool I want. For now I just create a pool right here. But here you can see where people have already opened positions.

And just out of the box I can see a Tesla position has been opened. I can see there's another pool with quite a nice APR. And there's also a SpaceX against USDG pool. Now this is important to know: USDG is the native stablecoin of the Robinhood Chain, so it's just the USD-pegged stablecoin.

Bridging funds from Base with Relay

What do I need to do right now? I have tokens on Base, and some of those tokens I want to bridge over to Robinhood. So let's do this. I like to use Relay as a bridge. Right now I've seen that the prices have been pretty good there.

So I'm going to connect my wallet here. Now I'm connected. So how much do I have here? Not much. So I'm just going to take maybe 20%. I'm mainly just using it for gas. I don't know yet how expensive Robinhood is from a gas perspective, so I'm just going to bridge some over, and you can see the slippage is okay, 0.1%. It's the best bridge I've seen so far. I'm not affiliated with them in any way, it's just the best bridge I've found so far for myself. So I'm going to get started here. This opens up a little field, -0.02%. This is really good. Insufficient balance? No, I just want 20% of what I have. Then the slippage goes up a bit, and I swap.

Okay, done. This seemed easy enough. Let's see if it actually works. Can I already find it? Yes, it's already there. Really quick, I like that.

Finding tradable tokenized stocks on Uniswap

Now what I'm going to do is first see what kind of stocks are there that I can actually already trade on Robinhood. Most of these stock listings I've seen so far are on Uniswap. So the best way to look, I'm going to go on Uniswap here. And here you get a good overview. If you go under pools and click down here on the right, you can see all the pools. You get this very nice overview on Uniswap where you can search for tokens.

And they have a banner up here with stocks. So I'm going to click this, view all. And now I can only see stocks that are traded. I can filter even further, because I want to trade the ones on the Robinhood Chain. Because I know who is the middleman tokenizing these stocks: it's Robinhood itself, an established financial provider in the traditional world. So I have a higher trust that these tokenized stocks really hold, that they're really backed in the background.

So what I'm going to do now is filter here for Robinhood. And there I can see all the different stocks available, tradable already on Robinhood. You can see it's a ton of stocks, and the volume on some of them is still quite low.

Why tokenized stocks matter

But the amazing thing is you can trade them, no matter where you are, where you're from, which country, what your financial background is. You just need a phone. You connect to Robinhood, you have some crypto, you connect to the Robinhood Chain, you bridge over, and you can start trading these. So in terms of democratizing finance, this is huge.

And I think this is going to be really successful down the road. It's like the first trials where they do this, but I think ten years down the road this is going to be the standard. Everybody's going to trade these products as tokenized stocks.

Now, surprise, surprise: the tokens with the highest market cap and the most volume seem to be AI stocks and GameStop. I guess that's just a great meme. Tesla, Apple, the big ones, the Magnificent Seven: Apple, Google, Intel, SanDisk, Micron Technology, Coinbase. You can even trade Coinbase here, pretty cool. Meta, Microsoft, Netflix, Palantir. You get everything that is in the news, everything that you might want to trade, you can trade it here.

Why I'm buying SpaceX

For me, something I always like to look at is market cap to volume. And there, you can see SpaceX has a huge amount of daily volume compared to its market cap. What that means for me: I know today there was also news that came out, they showed their financial reporting, the first numbers since the IPO. And just looking at these numbers, I am going to buy SpaceX. Why SpaceX? It has the highest volume compared to market cap, so I can earn nice fees while I DLMM into SpaceX. I can earn good fees as well as get a good entry.

I always wanted to own SpaceX, but I didn't want to participate in the IPO, because I found that very hard to calculate and to manage that kind of volatility. At the beginning it was just like gambling; I didn't feel like I could get a good price or a good entry during that time. And I knew that a large amount of lockups are coming and continuing throughout this year, all the way until December. So I assume SpaceX is going to be under a lot of pressure for a while. But I think now might be a good time to start entering. And therefore I'm going to build a position here for SpaceX.

Moving USDG over and building the position

Now that we've checked this, I'm going to go back and look at SectorOne. I already have Robinhood selected, and I see that we also have SpaceX here. So what happened today? That was the announcement, a large correction. This was the current low it has had so far, so I can build up a nice position down here, going further down. What I need here is USDG, which I don't have right now. For that I am going to move about 100 bucks over to Robinhood as USDG.

USDG is a USDG across all chains, Robinhood too. And you can see again, it's a little bit of slippage, but I think this is okay, 0.18%. I would love to get it further down, but I think the larger your amount, the less slippage you'll incur here. So let's do this, fund some of that, and I swap.

And done. This is super fast. I like this about this bridge, it seems really fast at bridging between the chains. So, pros there.

Okay, so what I have here now: I'm already connected, and my balance shows. And what I'm going to do now is check the chart of SpaceX and build a thesis on which I can open a DLMM position.

Join the DLMM Clan

And if you are still there, you are truly part of the chosen 5%. You understand what it takes to make it in the most brutal market out there, which is the crypto market. I salute you in respect, and I invite you to join me in my community, the DLMM Clan. There are so many resources: opportunity trackers, tools, people you can ask questions to, and weekly meetups where you can find like-minded people like you and I.

Buying the bear market dip just feels so much better doing it together. I am speaking from my own experience, especially in the bear market where you're unsure; knowing others are around you is really helpful. The clan is 100% free and open to anyone who's joining right now. In the future, though, once the bear market bottom is in, we will start restricting access. But for you who's joining right now, it will always remain free. So looking forward to seeing you there.