How Turnstone is put together.

A stockholder deposits an eligible Robinhood Stock Token into its isolated Turnstone vault and receives a yield-bearing receipt token. That receipt is a claim on the vault, not a fixed quantity of stock: its exchange rate rises as stock-borrow interest is returned.

AAPL → tAAPL
NVDA → tNVDA
TSLA → tTSLA
HOOD → tHOOD
MSFT → tMSFT

The receipt is then accepted as collateral for a separate USDG credit line. The collateral does not leave the lending market when it is pledged, so it keeps accruing while the credit line is open.

Deposit stock
      ↓
Earn stock-borrow yield
      ↓
Use the yielding position as collateral
      ↓
Borrow USDG
      ↓
Keep accruing while the position is healthy

Professional desks borrow tokenized stock for market making, hedging, settlement inventory, arbitrage, short exposure and liquidity operations. They post approved collateral and pay a variable rate for access.

That interest is split 85% to stock suppliers, 10% to the safety reserve and 5% to the protocol. USDG borrow interest is split 80% / 15% / 5% on the same pattern.

The vault exchange rate is simply the vault's backing:

exchangeRate =
totalUnderlyingStockInVault
÷
totalReceiptTokenSupply

Borrowing power and health follow from it:

BorrowCapacity =
CollateralValue × CollateralFactor

HealthFactor =
CollateralValue × LiquidationThreshold
÷
DebtValue

LiquidationPrice =
DebtValue
÷
(UnderlyingClaim × LiquidationThreshold)

The interface calls the health factor the health buffer. Both refer to the same number; the exact value is shown in every position's risk detail.

Net carry is a spread between two rates:

Net carry =
Stock supply APY − USDG borrow APR

It can be negative, and Turnstone shows it that way when it is. Note that the two rates are denominated differently — yield accrues in stock, debt is owed in USDG — so a positive spread does not guarantee that yield covers interest in dollar terms.

Each market prices stock borrowing on a two-slope kinked curve. Below the optimal utilization of 80% the rate rises gently; above it, steeply — which pulls liquidity back into the market before withdrawals become impossible.

u ≤ optimal:
  rate = base + (u / optimal) × slope1

u > optimal:
  rate = base + slope1
       + ((u − optimal) / (1 − optimal)) × slope2

Supply APY is the borrow rate scaled by utilization, net of the reserve factor.

Every position carries a yield route. Accumulate keeps all stock-denominated yield inside the position and compounds the underlying claim. Offset debt routes yield accrued above the originally deposited stock amount toward reducing USDG debt.

Every stock market is isolated with its own vault, oracle feed, caps and parameters. Risk controls include per-asset supply and borrow caps, conservative collateral factors, liquidation thresholds, oracle freshness checks with a 15m heartbeat, a maximum price deviation of 2%, emergency pause, a reserve factor, utilization ceilings, a 50% close factor, explicit bad-debt accounting and a 48-hour governance delay.

A receipt token cannot be redeposited into its own vault, and the same receipt cannot be looped as collateral against itself. Leverage is bounded by construction. See the full risk framework.

Turnstone runs on Robinhood Chain.

Network      Robinhood Chain
Chain ID     4663 (0x1237)
Currency     ETH
RPC          https://rpc.mainnet.chain.robinhood.com
Explorer     https://robinhoodchain.blockscout.com

Wallet connection, network detection and chain switching are live against this network. Turnstone never requests a seed phrase or private key, and every request is approved in your own wallet.