From spot stock pairing to packaged stock 3x leveraged positions, LongX brings Lighter derivatives to the Meme launchpad.

Written by: Sanqing, Foresight News

On September 1, Long launched LongX on the Robinhood Chain, and the inaugural product NVDA 3x Long (NVDAx3L) packages Lighter platform's Nvidia 3x leveraged position into an ERC-20 token, simultaneously launching the first demo trading pair DEMOTHREE/NVDAx3L for trading. At the time of publication, DEMOTHREE's market cap peaked at 6 million dollars, with a trading volume of approximately 3.2 million dollars.

On the same day, the Meme token AI (Artificial Inu), paired with the first NVDA pairing on Long, continued to rise, reaching a market cap of about 213 million dollars.

LongX Mechanism: Packaging Contract Positions, Pairing with Memes

NVDAx3L is issued by LongX's vault contract, with minting rights open to everyone. Anyone depositing funds can mint shares based on the net value at the time, with the underlying position uniformly held and adjusted by the protocol on Lighter.

Its net value is calculated in real-time after Lighter submits proof of status to the Robinhood Chain in batches. The secondary market executes transactions at the market price instantaneously, while the primary market mints and redeems based on net value, thus the two paths may exhibit divergence, but theoretically reliable arbitrageurs bridge the gap.

Long stated that liquidity provision, minting, and transaction fees generated from NVDAx3L activities will "flow back to AI," and characterized this expansion as "highly experimental," with only the official demo trading pairs being protected.

Foresight News reported in July on the early form of "stock token pairing Memes" (see article "When Memes Pair with Nvidia, Long and Bankr Bring Stock Tokens to the Launchpad"), at that time, the market cap of the leading token AI on Long was around 14 million dollars.

During the same period, the price of NVDA rose from 208.76 dollars to about 220.78 dollars, with a gain of only about 6%. Compared to AI's approximately 14-fold increase, it is evident that its returns mainly stem from pricing formed independently driven by sentiment on the Meme side.

According to Uniswap data, the NVDA locked in the pool has increased to over 9,000 shares, accounting for about 17% of the circulating supply of tokenized NVDA on Robinhood. The AI Community Vault has also accumulated about 190,000 NVDA tokens, with approximately 8.4 million AI permanently destroyed and 8.4 million locked in the vault.

There was also a small episode with Long's product launch. LongX is not the first product on the Robinhood Chain to turn NVDA leveraged positions into tokens. RobinVista launched a 2x leveraged NVDA2L on July 24, but that platform does not have a corresponding Meme issuance mechanism.

After the launch of LongX on September 1, RobinVista publicly stated in its comment section that this concept "feels entirely like plagiarism," and then separately tweeted to thank Long for "bringing attention," and introduced a Meme test token paired with NVDA2L.

With Competitors, How Does Long Secure Its Moat?

AI is the one with the highest market cap in the niche segment of "stock pairing Memes," but it is not the only gameplay, nor is it the highest-valued token on the Robinhood Chain.

The early breakout token CashCat on the Robinhood Chain reached a market cap of approximately 257 million dollars; the most active independent launch platform Pons had its token PONS reach a market cap of about 497 million dollars. (Foresight News has previously analyzed the advantages of Pons in detail, see article "Does Vlad's Attention Secure Pons' Throne on the Robinhood Chain Launchpad?").

It is worth noting why Long's position in the stock pairing Meme niche is becoming increasingly solid.

On August 4, Pons launched V2, connecting to Uniswap V4, allowing new tokens to pair with tokenized stocks (including NVDA, AAPL, HOOD, etc.); while Bankr also supports more than 90 stocks and ETF tokens for pairing, covering a wider range but lacking a single token mechanism like Community Vault to bind transaction fees and destruction.

The "Community Mode" is an option Long provides to all issuers. The fees come from Uniswap V4 hook settings on Long's trading pool, not an additional buy-sell tax within the token contract, with rates varying by pool. After enabling this mode, the fee collection address will switch from a personal wallet to the official vault contract, with stock tokens on the buying side and Meme tokens on the selling side automatically deposited into the vault proportionally, while supporting users to actively deposit.

For the fees generated by stock tokens on the buying side, 80% goes into the vault, and 20% remains with the initial recipient (parameters adjustable only by the protocol); for fees generated by the tokens themselves on the selling side, half is destroyed and half locked in the vault, with the destroyed portion permanently removed from the total supply.

The portion locked in the vault (including stock tokens left from the buying side and Meme tokens locked from the selling side) is currently static. Income, destruction, etc. have been automated, and Long has also included "vault assets for adding liquidity, buybacks, airdrops, etc." in the roadmap, but as of the time of publication, relevant functions have not been launched, nor is there any verifiable public contract code.

Long platform data shows that MOO (paired with Micron MU) and SPACEHOOD (paired with SpaceX SPCX) have both surpassed a market cap of 15 million dollars and are competing for the second position in the segment's market cap. Among them, MOO has activated the community mode, and has locked and destroyed approximately 9.3 million MOO each, securing about 27,400 dollars worth of MU tokens.

Risk Reminder:

Foresight News has previously listed the risks of stock pairing Memes: during a sharp drop, stock tokens in the pool can be concentratedly withdrawn, and large positions may find it difficult to exit at page prices due to slippage; risks can be reversed when issues occur with stock tokens themselves; pairing does not equal guarantees, with no fixed redemption rights or shareholder rights; stock trading can still occur on exchanges during market closures, possibly distorting prices, leading to short-term volatility due to concentrated arbitrage after opening.

Leveraged stock pairing Memes bring new risk factors: NVDAx3L net value is settled based on batch proof, leading to delays; under three times leverage, a corresponding decline in NVDA leads to a threefold impact on NVDAx3L holders; officially characterized as "highly experimental," currently only the official demo trading pairs are protected, while other spontaneously paired NVDAx3L trading pairs are unprotected.