> ## Documentation Index
> Fetch the complete documentation index at: https://docs.denar.markets/llms.txt
> Use this file to discover all available pages before exploring further.

# The BACKED partnership

> Denar and BACKED — the stock-backed floor asset of Robinhood Chain — are structurally aligned: BACKED joins the collateral list, and 10% of all Denar protocol fees buy and burn BACKED.

Denar and [BACKED](https://www.backed.is/) grew from the same corner of Robinhood Chain: shared builders, shared rails — Rialto liquidity, tokenized blue-chips, and the conviction that real assets, not emissions, should back everything. The partnership makes that alignment structural, in both directions.

## What BACKED is

BACKED is the chain's stock-backed floor asset: a fixed-supply token where **every trade buys more stock into the reserve — so the floor only rises**.

* A Uniswap v4 hook takes a **3% ETH tax on each buy and sell**, and routes it through Rialto into **tokenized blue-chips** held in the BACKED vault.
* The token is **redeemable in-kind, pro-rata** for its share of the vault — so arbitrage pins the market price to the backing, and the backing only accumulates.
* Redemptions carry a 5% fee and **reduce total supply**, raising the backing per token that remains.

In other words: where Denar is the chain's credit market for tokenized stocks, BACKED is the chain's buy-and-hold flywheel for them. Same asset class, two engines.

## Commitment one: BACKED joins the collateral list

BACKED will be usable on Denar **exactly like the stock tokens**: post it as collateral, borrow USDG against it, keep the position and its rising floor.

It is a natural fit for a collateral asset — and an unusually good one, because unlike a stock it carries a **redeemable floor**: the vault backing beneath every token is on-chain, in-kind, and grows with every trade. The market ships through the same listing discipline as every Denar collateral — an oracle that respects the vault backing rather than trusting spot alone, conservative parameters, an isolated market so BACKED risk never touches any other book. Listing parameters will be published here when the market goes live.

## Commitment two: 10% of all protocol fees burn BACKED

**One tenth of everything Denar earns — every protocol fee, on every revenue line, today's and tomorrow's — is committed to buying BACKED on the open market and burning it.**

That includes the live 10% share of borrower interest across the six stock markets, liquidation proceeds, and every dUSD-era revenue line as it switches on. The remaining 90% is the pool the [\$DENAR buyback](/token/revenue) draws from at token generation.

The logic is the flywheel, stated plainly:

1. Denar grows → protocol fees grow → **more BACKED burned** against a fixed supply with a rising floor.
2. BACKED grows → more trades → more stock in its vault → a stronger collateral asset on Denar → more borrowing → back to 1.

Two fixed-supply assets, one credit market, and every loop through the system shrinks both floats.

<Note>
  **Official channels only.** BACKED's canonical links are [backed.is](https://www.backed.is/) and [@isBacked\_](https://x.com/isBacked_) on X; Denar's are [listed here](https://www.denar.markets). Neither team will ever DM you a contract address — treat any address that does not come from those pages as hostile.
</Note>