How Preissue Markets works
Fund a company vault with USDG. Sell your receipts for a share of its USDG during funding, or hold through settlement to claim delivered stock tokens.
Before tokenization
Pre-listing here means before a stock token is available for settlement on Robinhood Chain. It does not mean buying into a company's IPO. The underlying company may already trade on a traditional exchange.
Each market has its own vault and pre-tokenized stock. A Nintendo market, for example, issues pNTDOY pre-tokenized stocks. Deposits into that market do not fund another ticker's vault.
The lifecycle
- Fund. The first deposit uses the oracle price. Later deposits receive receipts proportional to the vault's USDG and outstanding receipt supply.
- Hold or sell. During Funding, you can transfer receipts or sell any part of your balance for its proportional share of the vault's USDG.
- Settle. The designated operator delivers payout tokens. The contract freezes the pre-tokenized stock supply and payout pool, then releases the vault's USDG to the chosen recipient.
- Claim. Each holder burns their pre-tokenized stocks to receive a proportional share of the frozen pool. If the owner cancels instead, holders claim USDG refunds.
What a pre-tokenized stock represents
A pre-tokenized stock is a claim on a fraction of a future distribution, not legal title to the issuer's shares. It does not lock in one future stock token for each pre-tokenized stock. The final amount depends on the tokens actually delivered and the total pre-tokenized stocks outstanding.
Key terms
| Term | Meaning |
|---|---|
| USDG | The deposit token used by the configured markets. |
| Vault | The market contract holding deposits and, after settlement, payout tokens. |
| Pre-tokenized stock | The transferable p-ticker ERC-20 minted when you buy. |
| Oracle | The contract that accepts prices signed by the authorized server. |
| Payout pool | The token balance frozen for distribution at settlement or cancellation. |