How to earn yield on tokenized stocks
Tokenized stocks can do more than sit in your wallet. Here is where the yield comes from, what to expect, and how to start earning on NVDAB and SPCXB.
TL;DR: You can earn yield on tokenized stocks by depositing them into an onchain vault that lends them to a market maker. On WOOFi, the NVDAB (NVIDIA) and SPCXB (SpaceX) Earn vaults on BNB Chain are expected to pay between 4% and 9% a year, in the same stock token, on top of the stock exposure you already have. It takes one swap and one deposit.
Most stock tokens do exactly what a share in a brokerage account does: they sit in your wallet and move with the price. That is fine, but it leaves something on the table. Because a tokenized stock is an onchain asset, it can be lent out and put to work in ways a brokerage share cannot. This guide explains where that yield comes from and how to start earning it.
Can tokenized stocks earn yield?
Yes. A tokenized stock is a token backed 1:1 by a real share, and like any other token it can be deposited into onchain products that pay a return. The yield is separate from the share price, so you keep your exposure to the company and earn on top of it.
New to the asset class? What are bStocks? covers how tokenized stocks are issued and backed.
Where does yield on stock tokens come from?
There are two sources, and they stack on top of the stock you hold:
- Dividends. When the underlying share pays a dividend, bStocks apply it onchain to the token automatically. There is nothing to claim.
- Lending yield. Market makers need stock tokens on hand to fill trades. A vault lends them your tokens and pays you interest for it.
The second one is the new part. It is the difference between holding a stock token and putting it to work.
How do WOOFi Earn vaults pay yield on stocks?
WOOFi runs a PropAMM, an onchain market maker that quotes prices from live market data. To sell someone NVDAB, it needs NVDAB in stock. The Earn vaults supply that inventory.
- You deposit stock tokens into the vault from your own wallet.
- WOOFi borrows them to fill other people's swaps. Only WOOFi's own liquidity pool can borrow from the vault.
- The protocol earns on the trades it fills, and pays interest back to the vault.
- Interest compounds. It is paid in the same stock token and added to your position automatically.
How much yield can you earn on tokenized stocks?
WOOFi's stock vaults are expected to pay between 4% and 9% a year. The rate moves with supply and demand. A new vault starts at around 6%. It goes down as more deposits come in, and up as trading volume grows.
The yield is paid in the token you deposit. If you deposit NVDAB, your NVDAB balance grows. The live rate for each vault is shown on the Earn page.
How to earn yield on tokenized stocks, step by step
- Connect your wallet at woofi.com and switch to BNB Chain. Keep a small amount of BNB for gas.
- On the Stocks page, swap USDT or BNB into NVDAB or SPCXB.
- Open the Earn page and choose the NVDAB or SPCXB vault.
- Enter an amount and deposit. Your position starts earning once the transaction confirms.
Already hold NVDAB or SPCXB? Start at step 3.
How do you get your stock back?
You can request a withdrawal at any time. Each week, the settlement cutoff is 0:00 UTC on Monday, and withdrawals requested before the cutoff are available the following day, Tuesday. A portion of each vault is kept aside for instant withdrawals, for a 0.3% fee.
FAQ
Can you stake tokenized stocks?
Not in the proof-of-stake sense, because a stock token does not secure a network. The closest equivalent is depositing it into an Earn vault, where it is lent to a market maker and earns interest.
Do tokenized stocks pay dividends?
Yes, when the underlying company pays one. bStocks apply dividends and splits onchain through a multiplier, so the token reflects them automatically.
Is the yield paid in cash or in stock?
In stock. WOOFi's vaults pay yield in the same token you deposit, so your position stays fully in NVDAB or SPCXB.
Which stock tokens can earn yield on WOOFi?
NVDAB (tokenized NVIDIA) and SPCXB (tokenized SpaceX), both on BNB Chain. More vaults are planned as more tokenized stocks are listed.
Do you still own the stock while it earns yield?
You keep the full price exposure. Your deposit stays denominated in the stock token, so its value moves with the share price while the yield adds more tokens on top.
Start with one deposit
Earning yield on a stock used to mean waiting for a dividend. Onchain, the same stock can earn every day it is held. For the full story behind the launch, read Tokenized stock Earn vaults are live on WOOFi.
Put your stocks to work at https://woofi.com/earn
Sources: vault assets from WOOFi's published yield endpoint. Vault mechanics from the WOOFi Earn documentation. Listed tokens from the swap support endpoint. Backing and the dividend multiplier from BNB Chain's bStocks introduction.