Pendle for stocks on Robinhood Chain: split a stock token into its price and its dividends. Keep the stock, take dividends as USDG, or sell next year's dividends for USDG today.
Robinhood stock tokens reinvest every dividend automatically by raising an onchain multiplier (ERC-8056). There is no way to take a dividend as cash, and no way to sell or hedge dividends on their own, even though Wall Street trades them separately (dividend futures, dividend swaps, Treasury STRIPS for bonds).
Exdiv splits a stock token into two tokens until a maturity date:
- P (price): the stock without its dividends. At maturity one P redeems for exactly one share's worth of the token.
- D (dividends): every dividend Robinhood pays until maturity, claimable any time as stock tokens or straight into USDG.
One P plus one D always redeem back into the stock. That unlocks three things:
- Dividend advance: strip SPY and sell the D half for USDG in one transaction. Next year's dividends in cash today, price exposure kept.
- Income mode: claim each dividend as it lands, straight into Paxos USDG. The reinvestment off switch the token doesn't have.
- Stock at a discount: buy P below the share price; the discount is your return at maturity.
How it works: a DividendIndex tells splits from dividends (CRWD's 4:1 split and SPY's +0.17% dividend both just move the multiplier), and each vault prices P and D off that index. The vault has no price oracle, no owner and no liquidations. Every market is quoted in USDG on an escrowed order book, and a router does the strip-and-sell and the claim-as-USDG in one transaction.
What we found by reading every multiplier change Robinhood has made on mainnet (47 events across 195 tokens):
- Our classifier gets all 46 real changes right (45 dividends, CRWD's split) in a Foundry replay test, with no manual input.
- Token holders receive about 69% of each dividend, which matches 30% US withholding: SPY's $1.889 dividend on a $762.60 close (24.8 bps) raised its multiplier by 17.2 bps.
- Dividends applied on the pay date follow the token supply on that day, not the record date. LLY's supply grew 466x between the two, so holders on the record date received 0.2% of their dividend.
Quality: 64 Foundry tests (unit, fuzz, invariants over 25,600 random calls, and the mainnet replay), 98% line coverage, lint clean, all contracts verified on Blockscout.
Try it on Robinhood Chain testnet: strip a mirrored SPY, sell its dividends for USDG, or make the DEMO stock pay a dividend and watch it land on your D tokens.
Demo video: https://sanchay117.github.io/exdiv/demo.mp4
Built from scratch during the buildathon (Oct 1 to 4):
- Research: pulled every UIMultiplierUpdated event from Robinhood Chain mainnet and matched it against dividends and prices, which produced the 69% withholding and pay-date dilution findings.
- Contracts: DividendIndex (split vs dividend classifier with attested splits and bounded owner resolution), ExdivVault (P and D per maturity), ExdivFactory, ExdivBook (USDG limit order book), ExdivRouter (strip-and-sell, claim as USDG).
- Testing: 64 Foundry tests including invariants and a replay of all real mainnet multiplier changes; 98% line coverage.
- Deployment: live and verified on Robinhood Chain testnet. Mirrors of SPY, SCHD, MSFT and UPS follow mainnet multipliers via a keeper, and a DEMO stock pays a dividend on demand.
- App: React and viem frontend with a three.js hero; strip, sell dividends, claim, redeem and trade flows, plus a research page.
- Tooling: keeper (mirrors mainnet, announces splits from Robinhood's corporate-actions feed, syncs, settles maturities), market maker, one-command deploy script, CI with GitHub Pages.
Not raised; self-funded so far. Next steps are a mainnet deployment against Robinhood's real stock tokens (the contracts need no changes), an AMM for P and D, and an audit. We'd welcome Arbitrum milestone grants to get there.