Dividends

Owners of tokenized stocks have the right to dividends, just as if they were shareholders of the underlying assets. Cash and stock dividends are distributed in USDC equivalent directly into users’ DCLEX accounts. The USDC can then be withdrawn to stakeholders’ Ethereum accounts or used directly on the DCLEX platform to purchase stocks.

Eligibility

Eligibility for dividends is determined by a snapshot of stake holdings taken at the last market close before the ex-dividend date. Holders are entitled to a percentage of the distribution proportional to their holdings according to the snapshot.

DeFi Compatibility

DCLEX facilitates fair dividend distributions in DeFi, even if tokens are not held directly in an Ethereum wallet. For instance, users can deposit their tokens into a Uniswap trading pool as liquidity provision and will still receive dividends in their DCLEX accounts as long as they hold the corresponding LP tokens. LP tokens act as a proof of deposit and are used to redeem the deposited assets. In lending protocols, borrowers of tokenized stocks invariably remit their right to dividends to the lenders of the assets.

Note: DCLEX has no control over how LP tokens are traded on the secondary market. Consequently, dividends may be distributed to unverified accounts. In such cases, beneficiaries must first verify their DCLEX account to access dividends.