> For the complete documentation index, see [llms.txt](https://hoodstrategy.gitbook.io/hoodstrategy/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hoodstrategy.gitbook.io/hoodstrategy/the-hood-asset.md).

# The HOOD Asset (HOODX)

The protocol doesn't accumulate an abstract token — it accumulates **HOODX**, tokenized Robinhood stock. That's what makes HoodStrategy tangible.

## What HOODX is

**HOODX** is the tokenized version of Robinhood Markets, Inc. stock (NASDAQ: HOOD), issued by **Backed Finance** under the **xStocks** standard. Each token is **collateralized 1:1** by real Robinhood shares held in custody. It exists as both a Solana SPL token and an **ERC-20 on EVM chains**.

Key points for HoodStrategy:

* **Standard, freely transferable** on the secondary market. KYC applies only at mint/redeem with the issuer, not to wallet-to-wallet transfers. This is precisely what enables "pull" distribution to anonymous holders.
* **DeFi-composable** (liquidity pools, collateral) — usable in our Uniswap pool.
* Gives **economic exposure to the share price**, with no voting rights or legal ownership of the underlying share.

## Why HOODX and not another version

**Why not Robinhood's native Stock Tokens?** Robinhood's Stock Tokens (issued via Robinhood Assets (Jersey) Limited) are debt securities whose catalog does not necessarily include HOOD itself. HOODX (Backed) is an independent, third-party, freely composable asset.

**Why not Dinari's dShares?** dShares are ERC-20s but carry **transfer restrictions (a KYC whitelist)** enforced on every transfer. That would make distribution to thousands of non-whitelisted wallets impossible. HOODX is therefore preferred.

## Bringing HOODX on-chain

At launch, the protocol seeds a **HOODX/ETH pool** on Uniswap v4 so the hook has a local market to buy against. This is a **bootstrapping act performed outside the operating loop**. Once the pool exists, each hook purchase is atomic and local. Maintaining pool depth over time is a treasury task — see [Liquidity & Arbitrage](/hoodstrategy/liquidity-and-arbitrage.md).

## Corporate actions (splits, dividends)

If Robinhood stock splits or pays a dividend, the HOODX representation is adjusted by the issuer (Backed). Because the reward accumulator reads **actual HOODX balances at harvest time**, the adjustment is handled automatically. This behavior must nonetheless be **explicitly tested** during the audit.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://hoodstrategy.gitbook.io/hoodstrategy/the-hood-asset.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.