Uniswap opens TJAR fee conversion to apps, with Robinhood first

Crypto apps can now route fees collected in different tokens into a jar and receive a chosen token in return. Uniswap Labs opened its fee conversion system, TJAR, to other teams on Oct. 29, naming Robinhood as its first partner, according to the Uniswap Labs announcement.

For apps earning fees across chains, TJAR offers a way to consolidate those holdings without building custom conversion infrastructure.

Robinhood is already using TJAR across its supported chains for fees collected through the Uniswap API. Uniswap Labs says the fees are converted as they come in, with Robinhood receiving USDC and USDG.

How does TJAR turn mixed fees into one token?

An app deposits collected tokens into a Token Jar, then chooses the token it wants to receive, a price and a destination. Searchers can pay that price in the chosen token to claim assets from the jar; the payment goes to the app’s selected destination.

The jar does not price each token it holds. Instead, searchers decide whether the assets are worth collecting at the set price, taking their costs into account. Uniswap’s developer documentation describes the payment as a fixed threshold in the chosen token, with searchers also weighing gas costs.

For Uniswap’s own protocol fees, the chosen token is UNI and the destination is a burn address. Other apps can set their own token and destination, and can change the token, price and destination later or lock those settings permanently.

What does an app need to do to use it?

Uniswap says anyone can deploy a Token Jar in a single transaction. Apps that collect fees through the Uniswap API can set the jar as their fee recipient in a quote request; other teams can use the same setup for an app, hook, chain or API integration that collects fees.

TJAR is live on seven chains, including Robinhood Chain, according to the Uniswap developer documentation. The jar accumulates incoming assets until a searcher releases them, so the app receives its selected token when a searcher takes the trade.

Is there an extra protocol fee?

Uniswap’s documentation says its DAO can set an optional protocol fee, but none is set today. That means the documented protocol fee is currently zero; searchers still have to account for gas when deciding whether a release is worthwhile.

Uniswap Labs said the Token Jar framework handled more than $15.3 million in conversions last month when used for Uniswap protocol fees. That figure describes the system’s prior use; Robinhood is the first external integration named in the announcement.

Source material

• Uniswap Labs announcement — blog.uniswap.org
• Uniswap developer documentation — developers.uniswap.org