Providing liquidity with tokenized stocks: fees, impermanent loss and weekend gaps
· StockAPY
Trading fees are the largest real yield on a tokenized stock. What they cost you: impermanent loss, the weekend price gap, out-of-range positions and the venue's cut.
The live pools are on the Liquidity page. This is what the fee APY there does not show.
Fees are real yield
Trading fees are paid by traders on every swap, not by a marketing budget. That makes this the one category where the rate on a tokenized stock can be large and durable — for as long as people keep trading the pair.
Who keeps the fees
Not always the LP. Raydium keeps 16% of every fee, and StockAPY's rates are after that cut — Raydium's own figure is not. Uniswap charges a protocol fee on some pools, not deducted in our figures. Aero sends 5% of unstaked LPs' fees to sAERO Token Operators, which we deduct; LPs who stake for AERO emissions give up the fees entirely.
Impermanent loss
Put $500 of NVDA and $500 of USDC in a pool. If NVDA rises 30%, the pool rebalances by selling NVDA: you end with about 12% fewer shares and hold $1,140, against $1,150 had you just held — a $10 shortfall your fees have to cover. Bigger moves cost far more, and concentrated positions magnify it.
Markets close, pools don't
The stock exchange shuts on Friday; the pool keeps trading. Its price drifts on thin weekend flow, and when the market reopens arbitrageurs trade it back to the real price — against the liquidity providers. This gap is specific to tokenized stocks.
Concentrated liquidity
On Uniswap v3 and v4, Raydium CLMM and Aero CL pools you earn only while the price stays inside the range you chose. The APY shown assumes you stay in range; out of range you earn nothing and hold only the losing side.
Busy today, quiet tomorrow
We list only pools that traded at least $1,000 in the last 24 hours and hold $10k or more. A day's volume still swings: a pool on a heavy news day can show a rate it will not repeat. Pairs against memecoins are flagged speculative — you would hold half your position in that token.
Questions
- Is liquidity-provider yield on tokenized stocks real?
- The trading-fee part is: traders pay it on every swap, so it lasts as long as people trade the pair. It is earned while carrying impermanent loss, which lending does not.
- What is impermanent loss on a tokenized stock pool?
- When the stock moves, the pool sells the winner and buys the loser. With $500 of NVDA and $500 of USDC, a 30% rise in NVDA leaves you with about $1,140 against $1,150 had you just held: a $10 shortfall your fees have to cover.