EqualFi and The Equalis Protocol

EqualIndex - Enabling Yield and Fractionalization on any asset

What Is EqualIndex?

EqualIndex is a permissionless index token primitive built into the Equalis Protocol. It lets anyone create fully-backed basket tokens that represent fixed bundles of underlying assets. Once created, the composition never changes — no rebalancing, no governance committee, no active management. The basket is defined once and stays fixed forever.

Each index token is a standard ERC-20 that represents a precise, deterministic claim on the underlying assets held in the index vault. There are no external oracles. The value of an index token is determined entirely by its vault backing plus accumulated fee pots — transparent, verifiable, and on-chain.

EqualIndex is deployed and live on the RobinHood testnet (Chain ID 46630) with 9 index tokens already created: 3 crypto baskets and 6 stock-based indexes.

Fractionalization: Making Any Asset Accessible

One of the most powerful applications of EqualIndex is fractionalization. A single tokenized stock or RWA can be expensive — a tokenized share of AMZN might represent $350 of value. Not every participant can or wants to hold a full unit.

EqualIndex solves this by wrapping assets into index tokens with configurable bundle amounts. A single-asset index with a bundle amount of 0.05 means each index token represents 5% of one underlying unit. A $350 stock becomes a $17.5 fractional token. Permissionless. Divisible. Transferable.

This was built and deployed on RobinHood testnet during the Founders House:

Fractionalization is not limited to stocks. Any tokenized asset with an Equalis pool — treasuries, bonds, real estate, commodities — can be wrapped into an index token and fractionalized the same way. The primitive is asset-agnostic.

Borrowing the Underlying at 100% LTV — No Liquidation Risk

EqualIndex Lending lets index token holders borrow the underlying assets directly against their index position. The index tokens are the collateral. The loan is configured at 100% LTV, meaning you can borrow the full value of the underlying basket.

There is no oracle-driven health factor. There is no liquidation market. There are no liquidation bots, no MEV extraction, and no cascading auction failures.

Here is how it works:

Borrowing:

1. You hold index tokens (e.g., EQRHAMZN) in your Position NFT

2. You call borrowFromPosition, specifying how many index units to pledge as collateral and a loan duration

3. The protocol locks your index tokens via the module encumbrance system

4. The underlying assets (e.g., AMZN tokens) are transferred to you from the index vault, proportional to the bundle amounts and the configured LTV

5. A flat native fee (ETH) is collected at borrow time — tiered by collateral size

6. The loan has a fixed maturity (configurable between 1 day and 365 days on RobinHood testnet)

Repayment:

1. Before maturity, you return the borrowed underlying assets

2. Your index token collateral is unlocked and returned to your position

3. The underlying assets go back into the index vault, restoring full backing

Default — The Collateral Burn:

1. If the loan expires without repayment, anyone can call recoverExpired

2. The protocol burns the collateral index tokens — reducing total supply

3. The underlying assets that were borrowed are written off against the burned collateral

4. The vault's remaining backing still fully covers the remaining index token supply

5. No auction. No liquidation bots. No slippage. The math just works because the collateral is the claim on the underlying

This is the key insight: because the index token is a fully-backed claim on the exact assets being borrowed, default resolution is deterministic. Burning the collateral is economically equivalent to the lender keeping the borrowed assets. The remaining index holders are unaffected because the vault-to-supply ratio is preserved.

Why this matters:

• No oracle dependency for the lending mechanism

• No liquidation risk from price volatility — the collateral and the loan are denominated in the same economic value

• No third-party liquidation market needed

• Default is contained — it does not create bad debt or force market selling

• The borrower's worst case is losing their index tokens (which they already pledged)

Yield: Every Operation Feeds the Fee Rail

EqualIndex is not a passive wrapper. Every operation generates fees that flow back to participants through the Equalis unified fee system.

Fee sources from EqualIndex operations:

Where the yield goes:

Fees are split through a two-stage mechanism:

1. A configurable share is routed through the pool fee router, which splits it three ways:

   • Fee Index — passive yield for all depositors of the underlying asset pool

   • Active Credit Index — yield for active participants (borrowers, encumbrers)

   • Treasury — protocol revenue

2. The remainder accumulates in the index's fee pot for that asset. When an index holder burns their tokens, they receive their proportional share of the fee pot on top of their vault backing. The longer you hold, the more fees accumulate in your favor.

The compounding effect:

Because EqualIndex operates within the Equalis unified fee rail, index activity generates yield for participants across the entire protocol — not just index holders. An AMZN mint fee partially flows to every AMZN pool depositor. A basket flash loan on EQRH5 generates fees for depositors of all five underlying stock pools simultaneously.

And it works in reverse: index token pools themselves earn from protocol-wide activity. If you deposit EQRHAMZN index tokens into their Equalis pool, your position earns from all EQRHAMZN activity across the protocol.

Basket Flash Loans: Atomic Multi-Asset Liquidity

EqualIndex supports basket flash loans — atomic borrowing of the proportional underlying assets that make up a specified number of index units. A borrower can flash-borrow the full basket, use the assets for arbitrage or multi-leg execution, and return everything plus fees in the same transaction.

For a 5-stock basket like EQRH5, a single flash loan atomically borrows proportional amounts of AMZN, AMD, NFLX, PLTR, and TSLA. This turns the index into a deterministic liquidity primitive for bundling and unbundling exposure on demand.

Flash loan fees follow the same routing model as other index fees: a configured share flows through the pool fee router into the three-way split, while the remainder accrues to the fee pot for index holders.

Position Integration: Capital-Efficient Index Exposure

EqualIndex integrates directly with the Equalis Position NFT system. Position holders can mint and burn index tokens from their existing deposits without any external token transfers.

Minting from Position:

• Your deposited assets (e.g., AMZN in the AMZN pool) are encumbered in-place

• No tokens leave the protocol — it is pure internal accounting

• Index tokens are credited to your position in the index token's pool

• Your encumbered principal still earns from protocol-wide fee activity

Burning from Position:

• Index tokens are burned from your position

• The NAV portion is unencumbered back to your position as available principal

• The fee pot portion is credited as new principal (realized yield)

• No external transfers needed

This means a user can go from raw asset deposit → fractional index exposure → borrow underlying → repay → back to index exposure, all within a single Position NFT, without ever moving tokens between wallets or contracts.

Yield Loops: Yield Amplification Through Index Tokens

EqualIndex enables a yield amplification strategy called Yield Loops. The loop works like this:

1. Deposit an asset (e.g., stETH) into its Equalis pool

2. Mint a single-asset index token (e.g., istETH) from your position

3. Deposit the index token into its pool

4. Borrow the index token at 0% interest (self-secured credit, same-asset)

5. Burn the borrowed index token to release the underlying

6. Repeat from step 2

Each iteration increases your Active Credit Index weight, which determines your share of protocol-wide active credit yield. The 24-hour time gate on Active Credit prevents flash-farming — positions must be maintained to earn.

The cost is origination fees on each loop iteration. The reward is an amplified share of the Active Credit Index yield stream. This is not leverage in the traditional sense — there is no price exposure amplification and no oracle-triggered liquidation. It is cashflow amplification: increasing your share of protocol revenue by actively utilizing the system.

What Is Deployed on RobinHood Testnet

All of the following is live on RobinHood testnet (Chain ID 46630):

Diamond Contract: 0xf85E0456C59472937484a3C2E6F9180853676efA

Underlying Stock Token Pools:

Index Tokens:

Crypto Index Tokens (also deployed):

Index Fee Configuration (all stock indexes):

• Mint fee: 150 bps (1.5%)

• Burn fee: 250 bps (2.5%)

• Flash fee: 90 bps (0.9%)

EqualIndex Lending Configuration (all indexes 0–8):

• LTV: 100% (10,000 bps)

• Origination fee: 100 bps (1%)

• Min duration: 86,400 seconds (1 day)

• Max duration: 31,536,000 seconds (365 days)

• Tiered native fee structure

Lending Facet:

• Current implementation: 0x3C591F733D71bDdA774875647562BEA3039605Aa

The Complete Picture: From Raw Asset to Yield-Generating Fractional Position

Here is the full lifecycle that EqualIndex enables on RobinHood chain:

┌─────────────────────────────────────────────────────────────────────┐
│              EqualIndex Lifecycle on RobinHood Chain                │
├─────────────────────────────────────────────────────────────────────┤
│                                                                     │
│   1. TOKENIZE                                                       │
│   ┌──────────┐                                                      │
│   │  Stock / │  Tokenized asset enters an Equalis pool              │
│   │   RWA    │  (e.g., AMZN → Pool 10)                              │
│   └────┬─────┘                                                      │
│        │                                                            │
│   2. FRACTIONALIZE                                                  │
│        ▼                                                            │
│   ┌───────────┐                                                     │
│   │ EqualIndex│  Wrap into index token at 0.05 bundle               │
│   │  Mint     │  $350 AMZN → $175 EQRHAMZN token                    │
│   └────┬──────┘                                                     │
│        │                                                            │
│   3. EARN                                                           │
│        ▼                                                            │
│   ┌──────────┐                                                      │
│   │  Hold /  │  Mint/burn/flash fees accumulate in fee pots         │
│   │  Deposit │  Pool fee share flows to all depositors              │
│   └────┬─────┘  Active Credit Index rewards active participants     │
│        │                                                            │
│   4. BORROW (when liquidity needed)                                 │
│        ▼                                                            │
│   ┌───────────┐                                                     │
│   │ EqualIndex│  Pledge index tokens as collateral                  │
│   │  Lending  │  Receive underlying assets at 100% LTV              │
│   └────┬──────┘  No oracle. No liquidation. Flat native fee.        │
│        │                                                            │
│   5. RESOLVE                                                        │
│        ├──── REPAY: Return underlying → get index tokens back       │
│        │                                                            │
│        └──── DEFAULT: Collateral index tokens burned                │
│              Underlying written off. No auction. No contagion.      │
│              Remaining holders unaffected (vault ratio preserved).  │
│                                                                     │
└─────────────────────────────────────────────────────────────────────┘

Why EqualIndex on RobinHood Chain

RobinHood has built its brand on making financial markets accessible. EqualIndex extends that mission on-chain:

• Accessibility — Fractional index tokens make expensive assets available to any participant at any size. A $17.5 fractional AMZN token is more accessible than a $350 whole share.

• Yield generation — Index activity generates fees that flow back to participants. Holding is not passive — it is productive. Every mint, burn, and flash loan creates yield for holders and depositors alike.

• Liquidity on demand — EqualIndex Lending lets holders access the underlying assets when they need them, at 100% LTV, without liquidation risk. Borrow, use, repay. Or default and lose the collateral cleanly. No surprises.

• Composability — Index tokens are standard ERC-20s. They can be traded, used as collateral in other protocols, or held in any wallet. Within Equalis, they integrate with Position NFTs, self-secured credit, P2P lending, and the full product suite.

• Deterministic and transparent — No oracles for index pricing. No active management. No rebalancing. The basket is what it is. The vault backing is verifiable on-chain. The fee pots are visible. The lending terms are fixed at borrow time.

• Permissionless creation — Anyone can create a new index for any combination of assets that have Equalis pools. The protocol does not gatekeep which baskets exist. The market decides.

EqualIndex is not a wrapper. It is a financial primitive that turns any tokenized asset into a fractionalized, yield-generating, borrowable position — all within a single unified protocol.

Deployed on RobinHood Testnet — Chain ID 46630 — March 2026

The entire Equalis Protocol was deployed to RobinHood Testnet during the Hackathon. The Index Token Lending Protocol was finalized and tested the first day. To accomplish this, a few prerequisites were required. To utilize Position Agents, ERC-8004 was needed for Agent registration. ERC-8004 is not live on RobinHood Testnet at the canonical addresses, so it was deployed at non-canonical addresses for temporary use.

CREATE2 Factory: 0xf9f9b8bbbc33cbdc7e10dc3e085db359211f3964

Proxies: IdentityRegistry: 0x47869902e1a9B009eE520E88e7DD73c87c840Fa6

ReputationRegistry: 0x0F3C4CefA8ed02207F3E51e0676C658Ca69cC673

ValidationRegistry: 0xa3e393aad1723E78C240D6692c9b069cD507C17c

Implementations: IdentityRegistry impl: 0x43063cF3227aF086120dFF56b8Bfe8BB998b3bdc

ReputationRegistry impl: 0x7255BA1117213841a79778A594BD4f70f810ec9c

ValidationRegistry impl: 0x32eE719E70aa71e7318369484D21b0a5B315F1FF

Once complete, the Protocol Diamond Proxy was deployed at: 0xf85E0456C59472937484a3C2E6F9180853676efA

5 Equalis Protocol Pools were then deployed for Stock Tokens:

Pool 10 AMZN at 0x5884aD2f920c162CFBbACc88C9C51AA75eC09E02

Pool 11 AMD at 0x71178BAc73cBeb415514eB542a8995b82669778d

Pool 12 NFLX at 0x3b8262A63d25f0477c4DDE23F83cfe22Cb768C93

Pool 13 PLTR at 0x1FBE1a0e43594b3455993B5dE5Fd0A7A266298d0

Pool 14 TSLA at 0xC9f9c86933092BbbfFF3CCb4b105A4A94bf3Bd4E

6 Stock Based Index Tokens were deployed:

Index 3 EQRH5 (EqualIndex RH 5 Stocks) at 0x4EAEe5dB3662717d7cBed5Fdd8847200af9EF246, Pool 15, assets AMZN/AMD/NFLX/PLTR/TSLA at 0.05 each.

Index 4 EQRHAMZN (EqualIndex RH AMZN) at 0x2c69314B0b12E1F7A49CD08963aB113f55866726, Pool 16, asset AMZN at 0.05.

Index 5 EQRHAMD (EqualIndex RH AMD) at 0xB173d80f09Fca46aBc9B16d8d89f556BFaF333ca, Pool 17, asset AMD at 0.05.

Index 6 EQRHNFLX (EqualIndex RH NFLX) at 0xDC267b649804f7f6897dCB63ADF12c236b494a55, Pool 18, asset NFLX at 0.05.

Index 7 EQRHPLTR (EqualIndex RH PLTR) at 0x81d620EbbCEa217A583Af3E919eb121F88286a2c, Pool 19, asset PLTR at 0.05.

Index 8 EQRHTSLA (EqualIndex RH TSLA) at 0x30a818FC7b64D7D24c674DCCF37Be0363aF7746C, Pool 20, asset TSLA at 0.05.

Further work focused on an MVP UI for Index Tokens and Lending.

Note Index Token Borrowing is only live on RobinHood chain and not Arbitrum, ETH or Base Sepolia at this time as it was completed and deployed for the Hackathon Weekend.

Currently looking to Raise or compete for further grants.