> For the complete documentation index, see [llms.txt](https://docs.usefarlight.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usefarlight.com/robinhood-chain/why-robinhood-chain.md). # Why Farlight runs on Robinhood Chain The properties Farlight needs from a host network, how Robinhood Chain supplies each of them, and where the protocol fills the remaining gaps itself. A lending protocol for tokenised equities has three hard requirements of its chain. The collateral has to be a plain, self-custodied ERC-20. The issuer has to be regulated. And Chainlink has to price the collateral. Robinhood Chain meets all three and adds a fourth thing no other network offers: the distribution of the broker that issues the assets. Everything below is the supporting detail for that one sentence. ## Property by property The table is drawn from Robinhood's published documentation and from material released by the Arbitrum Foundation. | Area | On Robinhood Chain | Why it matters to Farlight | | ------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | | Stack | A dedicated Arbitrum Nitro chain (Orbit) in rollup mode, settling to Ethereum with blob data availability; canonical withdrawals take 7 days | Ethereum security is inherited and the standard Arbitrum tooling works without changes | | Status | Mainnet since 1 July 2026 as chain ID 4663; about $540M TVL by mid-August 2026 (reported figures run from $536M to $1.4B depending on the source) | A live network carrying real assets and real users | | Deployment | Permissionless and EVM-equivalent; Solidity and Vyper, Foundry and Hardhat; Stylus (Rust and WASM) available as well | The protocol contracts deploy without anyone's permission; Stylus hosts the signature verifier | | Block time and fees | Blocks about every 250 ms, 100 ms latency through preconfirmations; median transaction near $0.001; gas paid in ETH | Originations and liquidations confirm fast; filling across twenty offers stays cheap | | Sequencer | A single Robinhood-operated sequencer, first-come-first-served, with sanctions screening at the sequencer; forced inclusion through the L1 delayed inbox after 24 hours | Farlight is designed to survive a 24-hour outage; the Chainlink Sequencer Uptime Feed is present | | Native RWAs | **Stock Tokens**: 18-decimal ERC-20s from Robinhood Assets (Jersey) Ltd, backed 1:1 by shares in US custody, available in 120+ countries | The collateral set, issued by a listed broker | | Corporate actions | ERC-8056 `uiMultiplier()`: dividends reinvest and splits appear as a shares-per-token ratio | Collateral value compounds on its own and no dividend leaks out | | Oracles | Chainlink Data Feeds (24/5), Data Streams (v11 RWA schema with `marketStatus`), CCIP and the Sequencer Uptime Feed; the multiplier is already in the price | Production-grade pricing from day one | | Stablecoins | USDG (Paxos, regulated under MiCA) is native and already used by Robinhood Earn on Morpho; USDe is present; USDC via CCTP *unconfirmed* | The settlement asset | | Account abstraction | ERC-4337 EntryPoints v0.6 through v0.8, EIP-7702 (ArbOS 40); Alchemy Gas Manager and ZeroDev | Gasless onboarding, approve and borrow in one batch, EIP-1271 offers | | Incumbent DeFi | Morpho Blue, Uniswap v2, v3 and v4, Lighter, Arcus, 1inch | Idle capital has somewhere to go and liquidations have liquidity to clear against | | Compliance layer | **Nothing on-chain** for Stock Tokens: no allowlist, no transfer hook; eligibility is enforced in Robinhood's UI and at KYC'd primary issuance and redemption | Farlight enforces eligibility at the protocol boundary | | Ecosystem economics | Robinhood remits 10% of the chain's net revenue to the Arbitrum DAO; $1M sponsorship of Arbitrum Open House 2026 | Grants and audit subsidies are open to builders | ## The other candidates * On Solana, tokenised stocks (Kamino, Jupiter Lend) live in pooled markets with tight caps, and third parties issue them rather than the broker whose customers hold them. * Base received tokenised stocks from Coinbase on 24 August 2026. They are newer, and no lending stack has grown around them yet. * Ethereum mainnet has the deepest DeFi anywhere but no broker-issued equities of its own, and its gas costs rule out a twenty-lender syndicate. Robinhood Chain is the only network where the assets, the price feeds, the settlement currency, account abstraction and low fees all sit together, backed by distribution from the broker that issues the collateral. ## What the chain leaves to Farlight An honest case also names the gaps. * Stock Token eligibility is not enforced on-chain. Farlight enforces it through the [access registry](/architecture/eligibility.md). * Nothing protects users during a sequencer outage. Farlight adds a grace period and the delayed-inbox route; see [Surviving sequencer failure](/risk/sequencer-and-chain.md). * Price gaps that build while markets are closed are not accounted for. Farlight applies session-aware haircuts; see [Oracles, sessions and the price checks](/risk/oracles.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.usefarlight.com/robinhood-chain/why-robinhood-chain.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. 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