The Token Jar fee conversion system from Uniswap Labs is now open to other apps through an open-source tool called TJAR. Robinhood is the first integration partner, and Uniswap Labs said more will follow.
Uniswap Labs launched an open-source fee conversion tool called TJAR, naming Robinhood as its first integration partner. The tool lets apps choose which token they receive as fee revenue.
Apps can end up holding, Uniswap Labs said, thousands of tokens from the fees they collect across chains. Teams have usually had to build their own infrastructure to convert those holdings into a few chosen tokens.
How TJAR converts fees
Apps deposit their fees into a Token Jar, and searchers compete to convert them. The app then receives fees in its chosen token. Crypto Briefing describes searchers as third parties hunting for profitable opportunities onchain.
The jar does not set a price for each token it holds, according to Uniswap's documentation. Searchers decide whether to accept the trade, with payment going to the recipient the app chose.
Setup takes one step. According to Uniswap Labs: "Anyone can set up a token jar in a single transaction." Apps can change the token, price and destination at any time, or lock the settings permanently.
Token Jar was originally built for Uniswap's protocol fees. Uniswap Labs said it handled over $15.3 million in conversions in September. Uniswap's DAO governance can also set an optional protocol fee for TJAR, but none is set at present, according to the documentation.
Robinhood already collects fees through TJAR
Robinhood is already using TJAR across its supported chains for fees collected through the Uniswap API. It receives fees from its jars in USDC and USDG, Uniswap Labs said.
The two companies already work together. Uniswap's trading protocols are live on Robinhood Chain, while its web app, wallet and API support Robinhood Stock Tokens.
TJAR is live on seven chains, according to Uniswap Labs, and developers can access the code, deployment addresses and audit reports.
Sources: The Block, Crypto Briefing
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