Robinhood’s partnership with Uniswap is helping the brokerage rapidly build liquidity on its new blockchain, potentially removing a key obstacle to attracting users and assets, according to Standard Chartered.
In a recent note, Standard Chartered analyst Geoffrey Kendrick said Robinhood Chain has grown to nearly $1 billion in total value locked (TVL), which he described as the fastest growth of any blockchain by that measure. Virtually all of Robinhood Chain’s liquidity needs are being met through Uniswap V2, V3 and V4, Kendrick said.
The arrangement gives Robinhood access to established decentralized finance infrastructure as it scales its blockchain, potentially strengthening its ability to attract users without having to build liquidity from scratch.
The partnership is also having a significant impact on Uniswap’s token economics. According to Standard Chartered, protocol fees generated through Robinhood are now the largest source of UNI token burns.
The UNI burn rate has roughly doubled since a Robinhood-linked fee switch was activated on July 27, reaching an annualized pace of about $90 million. At UNI’s current price of roughly $3.50 apiece, that would translate to 25 million UNI tokens, or just over 4% of the circulating supply, being burned annually.
Robinhood Chain’s liquidity sources. Source: Standard Chartered
