DeFi’s most productive periods have been defined by experimentation.

DeFi 1.0 introduced AMMs, liquidity mining, open lending markets, automated yield vaults and composable protocols. DeFi 2.0 expanded this design space through protocol-owned liquidity, bonding mechanisms, vote-escrow tokenomics, liquidity marketplaces and self-repaying loans.

Stock tokens introduce a new set of assets for developers to build around. They can be held by contracts, traded through applications and integrated into products outside traditional brokerage infrastructure.

At Rialto, we want to support builders experimenting with stock tokens. If you are building a novel protocol using stock tokens, you can apply for a Rialto API key here and review our swap documentation here.

The projects below show what builders are already creating with Rialto’s execution infrastructure.

Index Finance

Index Finance uses Rialto to purchase tokenized stocks for distribution to INDEX holders.

INDEX trades pass through a Uniswap v4 INDEX/ETH pool. A hook collects a fee in native ETH, meaning the protocol does not need to sell INDEX to fund its stock purchases.

The collected ETH is transferred to the protocol treasury and divided across its supported stock basket. The purchased equities are then sent proportionally to eligible INDEX holders.

Users do not need to stake or submit a claim. Stock tokens are transferred directly to qualifying wallets.

Before integrating Rialto, Index had access to a limited selection of stocks through existing liquidity routes. Those purchases also carried high execution costs.

The Rialto integration expanded the number of stocks available to Index, reduced its stock-purchase fees and allowed users to buy and sell stocks directly through the Index interface.

The current basket includes companies such as Apple, AMD, Amazon, Coinbase, Alphabet, Meta, Microsoft, Nvidia, Palantir, SpaceX and Tesla.

The protocol publishes its treasury, fee hook and distributor contracts, together with the addresses of every supported stock token. Individual distribution rounds can also be checked through Robinhood Chain’s block explorer.

Index recently expanded this system with Indices, a treasury builder for other tokens.

Indices allows a creator to select multiple tokenized stocks, assign a weight to each asset and create a treasury address. Fees generated by the creator’s token can then be sent to that address.

The treasury uses those fees to purchase the selected stock basket and distributes the resulting assets to holders according to the amount of the creator’s token they hold.

Creators can construct a custom portfolio or select a prebuilt basket. Current examples include a broad-market portfolio, the Magnificent Seven, a semiconductor basket and a group of companies connected to crypto markets.

The creator also selects how much of the routed fee revenue is allocated to holders. The portion not allocated to holders remains available for the creator to claim.

The treasury’s input asset is fixed when it is created. ETH and USDG can fund a supported basket, while a token paired directly with a stock token can distribute that stock to holders.

Indices charges a protocol fee on revenue routed through its treasuries. This revenue supports stock rewards for INDEX holders and permanently locked INDEX liquidity.

The initial integration targets tokens launched through Pons. Creators can direct their token taxes or creator rewards into an Index treasury, converting activity in an external project into stock distributions for its holders.

This extends Index from a single stock-distribution protocol into infrastructure that other projects can use. The core Index treasury uses Rialto to execute its stock purchases. Indices applies the same general fee-to-stock model to third-party tokens, although its current public interface does not identify the execution route used by every treasury.

Long

Long is a token launch and trading platform built around stock-paired markets on Robinhood Chain.

A creator selects a tokenized stock, such as NVDA, TSLA, AAPL or SPCX, and launches a new crypto-native asset against it. The resulting market uses the selected stock token as one side of the trading pair.

This gives each Long market stock-token liquidity from launch. As trading activity moves assets through the pool, the community token remains connected to the equity held on the other side of the pair.

The model allows communities to create markets around memes and other crypto-native assets while generating trading activity and liquidity for tokenized stocks.

Long’s main challenge was scaling these markets across a wider range of stocks. Individual pools could not always provide enough liquidity for larger trades, and adding new stock tokens required access to additional execution routes.

Long integrated Rialto directly into its application. Rialto now supports every token and pair launched on Long, allowing users to trade through the router without leaving the Long interface.

Rialto’s propAMM-driven liquidity is particularly relevant for larger stock-token trades. It gives Long another source of liquidity beyond the balance available in an individual community pool and allows the platform to support more equities.

Long has since expanded its model through Community Mode and Community Vaults.

Community Mode allows the original deployers of early Long pairs to migrate into a new fee structure. The system can use pair activity for automatic token burns and to compound stock liquidity. Long has identified buybacks, indices and staking as possible future configurations.

Community Vaults add a separate treasury layer. A portion of the fees generated by both assets in a pair can be directed into a vault. The vault accumulates stock exposure independently of the pool’s active liquidity.

Long publishes its activity and methodology through a public Dune dashboard.

NetNet Capital

NetNet Capital uses Rialto to execute tokenized-equity purchases for Real World Bonds, its main product on Robinhood Chain.

Users subscribe with USDG and receive NET shares at a discount to the open market, subject to a vesting period. The subscription is divided within the same transaction. One portion is transferred to the fund’s reserves, while the remainder is routed through Rialto into tokenized equities.

The current portfolio includes Nvidia, SpaceX, Apple, Microsoft and Alphabet.

NetNet treats Rialto’s quote and transaction calldata as untrusted input. Token approval is limited to the individual trade, and the value of the equities received is checked against Chainlink prices. The transaction reverts if the delivered value falls outside a fixed range.

Purchased equities are held in the NetNet RWA Sleeve, a published Safe address that can be monitored onchain.

NetNet’s Superstore uses Rialto to execute purchases. Sealed packs resolve into tokenized equities using verifiable randomness. Each subscription and pack results in a programmatic equity purchase on Robinhood Chain.

NetNet’s reserves and NAV can be checked through its published treasury contract.

Disclaimer: The projects featured in this article are included solely as examples of teams building with Rialto’s API. Inclusion does not constitute an endorsement, recommendation or assessment by Rialto. Rialto has not independently verified every claim, product or security practice described. Users should conduct their own research before interacting with any protocol.