Methodology

A Robinhood Stock Token is meant to track one share of a company. In practice its onchain price drifts from the equity, because onchain supply and demand move independently of the stock market.

That gap is the basis. Kavo shows it as a percentage. A premium (positive) means the token costs more onchain than the equity is worth. A discount (negative) means it costs less.

Corporate actions such as splits and dividends are handled by a currentMultiplier on each token. One token is worth the underlying share price times that multiplier.

This matters because the reference and the oracle live on different surfaces. Comparing them naively produces a basis that is pure arithmetic error. Kavo normalises the reference first:

referenceToken = equityPrice * multiplier

basis = (executable - referenceToken)
        / referenceToken

Most tokens have a multiplier of exactly 1, so the distinction is invisible. For the ones that do not, and CRWD sits at 4.0, it is the difference between a correct number and a meaningless one.

Kavo holds no inventory, runs no AMM of its own, and never mints Stock Tokens. Every trade is routed into liquidity that already exists on Robinhood Chain: Uniswap v2, v3 and v4, using each protocol’s official quoter.

All candidate routes are quoted at your exact size, and the one returning the most tokens wins. Where an asset has no venue that can fill it, Kavo says No executable route rather than showing a price you cannot get.

The liquidity column is measured, not estimated: it is the largest USDG clip that still fills inside 1% price impact, derived from live quotes. Markets that cannot absorb $500 are labelled Thin and pushed down the default ranking, because a large basis on an empty pool is not an opportunity.

Stock Tokens are not shares. Holding one gives you no ownership of the company, no voting rights, and none of the protections that come with holding the underlying security. They are instruments issued by Robinhood that reference an equity price.

Kavo is a price-discovery and execution interface. It is not investment advice, and the basis it displays is a market observation, not a prediction that the gap will close.