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

# How Robin Markets Works: Stake, Merge, Earn, Withdraw

> Step-by-step walkthrough of how Robin Markets stakes Polymarket tokens, merges opposing positions into USDC, and deploys capital to earn DeFi yield.

This page walks through the complete lifecycle of a position staked with Robin Markets — from your first deposit all the way through market resolution. Each step happens on-chain, and you remain in control of your funds throughout. Understanding the full flow helps you make the most of the yield Robin generates on your behalf.

<Steps>
  <Step title="Stake Your Polymarket Positions">
    Connect your wallet to Robin Markets and stake your Polymarket YES or NO outcome tokens into the vault. Robin tracks each market independently, and all liquidity is pooled within the same contract so Robin can direct funds into DeFi strategies, optimize earnings, or pull capital quickly if needed.

    In return for staking, you receive **ERC-1155 vault shares** that represent your position and your proportional claim on all future yield generated by that market side. Each side (YES or NO) of each market receives its own distinct share token, so your stake is always precisely accounted for.

    <Note>
      Connect the same wallet you use on Polymarket. Robin works with your on-chain Polymarket account — a **Deposit Wallet** or a **Gnosis Safe proxy** — and detects the right one automatically. Email / MagicLink Polymarket accounts are not currently supported. See the [FAQ](/faq) for details.
    </Note>
  </Step>

  <Step title="Vault Pairs and Merges Positions">
    Robin automatically scans the vault for opposing YES and NO positions in the same market. When equal amounts exist on both sides, the vault merges them into USDC using the **merge function** in the Polymarket Conditional Token Framework (CTF) contract.

    Merging cancels out the directional risk — one YES token and one NO token together always equal exactly \$1.00 of value regardless of the outcome. The resulting USDC is a **delta-neutral position** that can be safely deployed into yield strategies. Your original bet exposure is fully preserved in the vault shares you hold.

    Tokens for which no counterpart position has been staked yet remain idle in the vault until a matching deposit arrives.
  </Step>

  <Step title="Capital Deployed to DeFi">
    Once USDC is available from merged positions, Robin supplies it to a **yield strategies on Polygon**, e.g. lending protocols. Yield begins accruing immediately and is distributed at three levels:

    * **Per market**, in proportion to each market's share of total USDC contributed from paired tokens, similar to how an ERC-4626 vault allocates returns.
    * **Per market side (YES/NO)**, weighted by the time-weighted average price (TWAP) provided by the Robin TWAP Oracle, so each side receives yield proportional to its economic value at deposit time.
    * **Per user**, tracked through internal yield indices that record exactly how much each staker is owed.
  </Step>

  <Step title="Track and Compound">
    While your prediction market position is live, Robin keeps your capital working. Open the Robin Markets web app at any time to view your **accumulated yield** and **estimated APY** for each staked position. All funds remain on-chain and fully non-custodial — Robin never takes custody of your tokens.

    You can withdraw at any time (see Step 5 below).
  </Step>

  <Step title="Withdraw Anytime">
    You do not need to wait for market resolution to access your funds. Whenever you choose to withdraw, Robin executes the full redemption in a single transaction:

    * Your vault shares are burned.
    * The vault returns your underlying outcome tokens (YES or NO) plus your earned yield in USDC.
    * If the capital has been deployed to a yield strategy, the vault first withdraws from that strategy and reconstructs your outcome tokens from USDC — all atomically, with no extra steps from you.

    Your yield travels with your position from the moment you stake to the moment you withdraw.
  </Step>

  <Step title="Market Resolution and Redemption">
    If you choose to hold your position all the way to market resolution, Robin makes it easy to claim everything in one click. When the outcome is confirmed on Polymarket, you trigger a single withdrawal that:

    * Moves your outcome tokens and accumulated yield from Robin Markets back to Polymarket.
    * Redeems your winning tokens on Polymarket for USD. (This might temporarily not be the case. If your winnings are not auto-redeemed, you can easily redeem them in your Polymarket portfolio.)

    This design keeps your **Polymarket portfolio statistics — including PnL and win rate — consistent** whether or not you staked with Robin. Your on-chain record looks exactly as if you held the tokens directly on Polymarket the entire time.
  </Step>
</Steps>

## What Happens to Unmatched Tokens?

When you stake tokens on one side of a market and there are not yet enough opposing tokens on the other side, your tokens sit idle in the vault. **They still earn yield as part of that market's pool**, but the overall pool's efficiency is reduced. The moment a counterpart deposit arrives and enough tokens are available on the opposing side, Robin automatically pairs and merges them and deploys the resulting USDC to the active yield strategy.

You do not need to take any action for this to happen. Robin monitors the vault continuously and merges positions as soon as matching tokens are available.

<Note>
  Even if your tokens are currently deployed into a yield strategy, withdrawal
  is instant and seamless. Robin reconstructs your full position from USDC in a
  single on-chain transaction — you never need to manually unwind anything
  before withdrawing.
</Note>