> For the complete documentation index, see [llms.txt](https://docs.div.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.div.fun/stock-dividends/how-stock-dividends-work.md). # How stock dividends work Paying dividends in a tokenized stock routes value from a HyperEVM trade, through HyperCore's spot order book, and back to holders as the stock's ERC-20. This page describes that path. It is more involved than a HYPE or stablecoin dividend, and understanding it explains the constraints that come with a stock reward asset. ### Why it cannot be a single swap HYPE and stablecoins live in on-chain liquidity pools, so converting the dividend share into them is a swap that completes inside the trade. Tokenized stocks do not live in pools — they trade on **HyperCore**, Hyperliquid's spot order book. To acquire a stock you must place an order on that book, wait for it to fill, and bridge the result back to HyperEVM. None of that can happen synchronously inside a single EVM transaction. So stock dividends use a **keeper-driven state machine**: value accumulates on-chain, and the [keeper](/protocol/the-keeper.md) drives it through the order book and back over several steps. ### The path, step by step This path applies from the first trade on the bonding curve. Curve-phase and post-graduation dividend shares both feed the same accumulation contract and follow the same keeper-driven settlement. 1. **Accumulate.** The dividend share from trades (curve or pool) is collected and converted to a stablecoin (USDC) on HyperEVM — the unit the stock's order book is quoted in. 2. **Bridge to HyperCore.** The stablecoin is moved from HyperEVM to the token's account on HyperCore, where it becomes spendable on the spot order book. 3. **Place an order.** The keeper places a spot buy order for the stock, sized to the accumulated stablecoin and priced against the market, on the stock's HyperCore market. 4. **Confirm the fill.** Orders on a book fill against available liquidity. The keeper confirms how much of the order filled. 5. **Bridge the stock back.** The acquired stock is sent from HyperCore back to HyperEVM, where it exists as a transferable ERC-20. 6. **Distribute.** The stock's ERC-20 is pushed to holders in proportion to their [eligible balance](/core-concepts/reward-eligibility.md), the same as any other dividend. From a holder's side, the outcome is identical to any dividend: the asset — here, the stock — appears in their wallet. The difference is only in timing and reliability, which the steps above introduce. ### Why it is asynchronous and batched Because the path crosses between HyperEVM and HyperCore and depends on an order filling, stock dividends settle on a slower, batched cadence than a simple transfer. The keeper accumulates enough value to place a sensible order, places it, waits for the fill, bridges, and distributes. This is a deliberate consequence of using a real order book rather than a synchronous pool. ### Liquidity and order books A stock can only be bought as a dividend if its HyperCore market has resting liquidity to fill against. Deep markets fill cleanly; thin markets fill partially or move the price. Orders are sized and priced to respect the market, and there are minimums below which an order is not worth placing. This is why [which stock you choose](/stock-dividends/supported-stocks-and-limits.md) matters, and why creators should prefer stocks with real, active markets. ### Access-restricted stocks Some tokenized stocks restrict which wallets can receive them. The protocol's design accounts for this so that a holder who cannot receive a particular stock does not block distribution to everyone else — the distribution continues, and the constraint is handled per holder rather than for the whole token. See [supported stocks and limits](/stock-dividends/supported-stocks-and-limits.md). ### Robust by construction Order-book actions can partially fill or fail without reverting, so the path is built as a state machine that can retry and recover rather than a single all-or-nothing transaction. Stranded value at any step is recoverable. The effect is that a stock-paying token keeps distributing reliably over time, even though any individual step is asynchronous. Continue to [supported stocks and limits](/stock-dividends/supported-stocks-and-limits.md). Paying dividends in a tokenized stock routes value from a HyperEVM trade, through HyperCore's spot order book, and back to holders as the stock's ERC-20. This page describes that path. It is more involved than a HYPE or stablecoin dividend, and understanding it explains the constraints that come with a stock reward asset. ### Why it cannot be a single swap HYPE and stablecoins live in on-chain liquidity pools, so converting the dividend share into them is a swap that completes inside the trade. Tokenized stocks do not live in pools — they trade on **HyperCore**, Hyperliquid's spot order book. To acquire a stock you must place an order on that book, wait for it to fill, and bridge the result back to HyperEVM. None of that can happen synchronously inside a single EVM transaction. So stock dividends use a **keeper-driven state machine**: value accumulates on-chain, and the [keeper](/protocol/the-keeper.md) drives it through the order book and back over several steps. ### The path, step by step This path applies from the first trade on the bonding curve. Curve-phase and post-graduation dividend shares both feed the same accumulation contract and follow the same keeper-driven settlement. 1. **Accumulate.** The dividend share from trades (curve or pool) is collected and converted to a stablecoin (USDC) on HyperEVM — the unit the stock's order book is quoted in. 2. **Bridge to HyperCore.** The stablecoin is moved from HyperEVM to the token's account on HyperCore, where it becomes spendable on the spot order book. 3. **Place an order.** The keeper places a spot buy order for the stock, sized to the accumulated stablecoin and priced against the market, on the stock's HyperCore market. 4. **Confirm the fill.** Orders on a book fill against available liquidity. The keeper confirms how much of the order filled. 5. **Bridge the stock back.** The acquired stock is sent from HyperCore back to HyperEVM, where it exists as a transferable ERC-20. 6. **Distribute.** The stock's ERC-20 is pushed to holders in proportion to their [eligible balance](/core-concepts/reward-eligibility.md), the same as any other dividend. From a holder's side, the outcome is identical to any dividend: the asset — here, the stock — appears in their wallet. The difference is only in timing and reliability, which the steps above introduce. ### Why it is asynchronous and batched Because the path crosses between HyperEVM and HyperCore and depends on an order filling, stock dividends settle on a slower, batched cadence than a simple transfer. The keeper accumulates enough value to place a sensible order, places it, waits for the fill, bridges, and distributes. This is a deliberate consequence of using a real order book rather than a synchronous pool. ### Liquidity and order books A stock can only be bought as a dividend if its HyperCore market has resting liquidity to fill against. Deep markets fill cleanly; thin markets fill partially or move the price. Orders are sized and priced to respect the market, and there are minimums below which an order is not worth placing. This is why [which stock you choose](/stock-dividends/supported-stocks-and-limits.md) matters, and why creators should prefer stocks with real, active markets. ### Access-restricted stocks Some tokenized stocks restrict which wallets can receive them. The protocol's design accounts for this so that a holder who cannot receive a particular stock does not block distribution to everyone else — the distribution continues, and the constraint is handled per holder rather than for the whole token. See [supported stocks and limits](/stock-dividends/supported-stocks-and-limits.md). ### Robust by construction Order-book actions can partially fill or fail without reverting, so the path is built as a state machine that can retry and recover rather than a single all-or-nothing transaction. Stranded value at any step is recoverable. The effect is that a stock-paying token keeps distributing reliably over time, even though any individual step is asynchronous. Continue to [supported stocks and limits](/stock-dividends/supported-stocks-and-limits.md). --- # 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://docs.div.fun/stock-dividends/how-stock-dividends-work.md?ask=&goal= ``` `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.