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How CRUMB works
The full protocol vision: USDG in a Morpho vault on Robinhood Chain, weekly yield converted into the stock token you choose, capital never touched.
This page describes the full protocol CRUMB is building towards. The app you can use today simulates steps 2 to 4; see the simulation for the precise boundary.
The weekly loop
- You deposit USDG. The deposit is recorded under your address. You choose the stock token your crumbs should go to, for example SPY, QQQ, NVDA, AAPL, TSLA.
- Your USDG earns lending yield. The protocol supplies deposits to a curated Morpho vault on Robinhood Chain. Borrowers post collateral and pay interest to borrow USDG; that interest is the yield. This is the same lending infrastructure that powers Robinhood's own USDG earn product.
- Every Monday at the US market open, the yield is harvested. Only the interest accrued during the week is withdrawn from the lending vault. Your principal is not part of the harvest, by construction: the protocol tracks principal and yield separately and the conversion path can only spend yield.
- The yield becomes stock. Each depositor's share of the harvest is swapped into their chosen stock token and credited to them. These fractions of stock are the crumbs.
- Repeat. Your USDG balance is the same as the day you deposited. Your stock position is a little larger than last week.
Capital is never touched
This is the rule the whole design hangs on. CRUMB never sells, swaps or spends your principal. The stock market can halve and your USDG balance does not change by a cent because of it; what changes is the dollar value of crumbs you have already collected.
That does not make the principal risk-free. In the full protocol it is lent out through Morpho, and lending carries its own risks. They are described plainly in risks.
Why weekly, why Monday 9:30 AM ET
Converting yield continuously would burn most of it in gas and swap fees. Converting monthly makes the feedback loop too slow to enjoy. A weekly batch keeps costs negligible per user and gives dollar-cost averaging across 52 entries a year.
Robinhood stock tokens track US equities and their price feeds follow market hours. Executing at the Monday open means the swap happens while the underlying market is open and liquid, after the weekend gap has been priced in. When Monday is a market holiday, the full protocol will execute on the next trading day.
The arithmetic
At an illustrative 7% annual rate, simple interest, swept weekly:
| Deposit | Crumbs per week | Crumbs per year |
|---|---|---|
| 100 USDG | ≈ $0.13 | ≈ $7.00 |
| 1,000 USDG | ≈ $1.34 | ≈ $70.00 |
| 10,000 USDG | ≈ $13.42 | ≈ $700.00 |
| 50,000 USDG | ≈ $67.12 | ≈ $3,500.00 |
7% is an illustrative rate, not a quote. Real lending yield floats with borrowing demand and can be far lower. Interest does not compound in this model, because it leaves as crumbs every week instead of being added to the principal.
About the stock tokens
On Robinhood Chain, stock tokens are ERC-20 tokens issued by Robinhood Assets (Jersey) Limited that give economic exposure to US shares and ETFs, priced on-chain through Chainlink feeds. They are not available to US persons and are restricted in several other jurisdictions. Details are in Robinhood's documentation and in our risks page.