How to Earn Yield on Tokenized Stocks
Tokenized equities can earn trading fees and emissions on top of price exposure. Here is where the yield comes from, and what it actually costs you.
A tokenized stock sitting in your wallet earns nothing. The same token supplied to a liquidity pool earns two things: a share of the trading fees, and whatever emissions governance directs to that pool.
That is the whole mechanism. Everything else is detail about how the two are calculated and what they cost you.
Where does the yield actually come from?
| Source | Paid by | Depends on |
|---|---|---|
| Trading fees | Traders swapping through your pool | Volume × fee rate × your share |
| Emissions | The protocol's token issuance | How much governance votes for the pool |
Note what is not on that list: the underlying equity. Tokenizing NVDA does not make NVIDIA pay you more. The yield is paid by traders and by token holders, not by the company.
This matters because the two sources behave very differently. Fee yield is real revenue and survives as long as people trade. Emissions yield is issuance — it depends on a token price and a vote, and it can be redirected next epoch.
What do the numbers look like right now?
Live figures from Alandale's pools, split into the two components:
| Pool | Fee APR | Emissions APR | Total |
|---|---|---|---|
| SPCX/USDG | 238% | 848% | 1,086% |
| WETH/SNDK | 155% | 663% | 818% |
| GME/USDG | 60% | 1,169% | 1,229% |
| USDG/NVDA | 13% | 678% | 691% |
Two things worth reading out of that table.
First, the split varies enormously. SPCX earns most of its return from real trading activity; GME earns most of its return from emissions. The first is more durable than the second.
Second, APR is yield divided by capital, so early pools pay disproportionately well — the same fee revenue spread over more TVL is a smaller percentage. Rates this high are a feature of arriving early, not a permanent state.
What does it cost you?
Three costs, in order of how often people forget them:
Impermanent loss. If NVDA doubles against USDG, an LP ends up holding less NVDA and more USDG than if they had simply held. On a volatile equity pair this is the dominant cost, and it is why fee APR alone is not profit.
Concentration risk. Concentrated liquidity multiplies your fee income by narrowing your price range — and stops earning entirely when price leaves that range. A tight range on a stock that gaps at the open is a range you will spend a lot of time outside of.
The three-layer risk stack. Smart contract, issuer credit, and the equity itself. Covered in What Are Robinhood Stock Tokens?.
How do you actually do it?
- Hold both sides of a pair — for example SPCX and USDG.
- Pick a price range. Wider is safer and earns less; narrower earns more per dollar and goes out of range sooner.
- Deposit, and hold the position NFT that represents it.
- Collect fees as they accrue, and claim emissions if the pool has a gauge.
The step people skip is (2). On a 24/7 market tracking an asset whose underlying only trades 09:30–16:00, price can move a long way while the equity market is shut. Ranges that assume continuous price discovery will disappoint.
Where Alandale fits
Alandale is a ve(3,3) DEX, which changes who gets paid. 100% of trading fees go to people who lock LUTE and vote — there is no protocol cut. Lockers also direct emissions, so the pools that get incentives are the ones token holders choose, not the ones a team picks.
For an LP that means the emissions half of your APR is not fixed. It is the output of a weekly vote you can participate in.
Concretely: 12 live pools, $173,555 TVL, $134,995 of 24-hour volume, and pools for NVDA, GME, SNDK and SPCX against USDG and WETH.
And because emissions are voted rather than fixed, an LP who also locks is not just renting yield — they are choosing where it goes.