𝗵𝘂𝗻𝘁𝗲𝗿

community strategy @offchain | @arbitrum evangelist | terrible trader - rts and posts are nfa

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

A complete guide on how @Arbitrum benefits from Robinhood Chain (eli5)

🚨 Trigger warning: There is mention of layer 2s and DAOs 🚨

Simply put, Robinhood Chain is an L2 on @Ethereum.

It’s built using the Arbitrum stack, a product we now call “dedicated blockchains” (yes we’ve deprecated the term “Orbit”)

Licensing terms of the Arbitrum stack is as follows:

> L3s on Arbitrum One pay nothing
> L2s on Ethereum pay 10% of their tx fee profits

So as an example, since launch, Robinhood Chain made $82,281 in gross profits.

> 10% of that $8,228
> annualized that’s ~$375k

Yes very small numbers but this is speaking conservatively, assuming Robinhood Chain sees no less growth than it’s seen the past week.

I expect that annualized figure to be much higher since the meme mania wasn’t even part of their GTM/strategy for bringing their business onchain.

The thesis is simple:

If you expect @RobinhoodApp to use their chain as a backend for their US app (already doing so in the EU) and other new lines of businesses as they’ve eluded to in the past, how high do you project that figure could go?

Where does the money go?

Of the 10% collected from dedicated blockchains that settle to Ethereum:

1. 2% goes to a developer guild, in the process of being created, to fund Arbitrum protocol development

2. 8% goes to the $ARB controlled DAO treasury where it may be used to fund investments for treasury growth or anything else token holders choose to direct funding towards

The other 90% the partner keeps. I saw people keep asking that so needed to clarify.

When $ARB utility?

This is the most talked about topic irt to $ARB.

It’s most important to note that $ARB has onchain enforceable rights to:

> the DAO treasury
> protocol upgrades to Arbitrum One

No other blockchain in crypto has given this much control to token holders. Full stop.

It’s clear that our industry is starting to finally value running a business as a priority.

The reality is that:

1. Most businesses are not profitable
2. If they are profitable, they focus on growth
3. Only once their growth has reached a certain point, and the opportunity cost of buybacks/burns (as an example) is higher than reinvesting into growth, imo is when fee sharing can be argued.

Otherwise you’d be asking for dividends in a company that’s bound to fail anyways because it never grew enough to begin with.

What does Arbitrum’s growth story look like?

You’re watching it in real time. Arbitrum’s value, where you agree with it or not, is:

> Neutrality

The ability to be the default for most teams allowing for its network effect to grow exponentially. Good examples are:

@HyperliquidX’s liquidity source for its most formative years
@RobinhoodApp’s GTM partner starting w/ RH wallet years ago

> The Teams

This includes anyone who’s ever launched directly on Arbitrum One, a dedicated blockchain, and especially the teams building it including

@Offchain
@Arbitrum
@EntropyAdvisors
OpCo
etc

>The Tech

Arbitrum is one of the most robust and fastest tech stacks in crypto by block time making it a very attractive environment for MMs.

There are faster tech stacks but they don’t have the same time in market or stopping power of a massive finance eco built atop

Dedicated blockchains are one of Arbitrum’s killer products because it enables institutions to follow Robinhood’s model of launching on Arb One first then working with us to migrate to their own dedicated blockchain later.

A Fortune 500 company doesn’t want to be a tenant forever, even to the biggest blockchains.

So Arbitrum as a platform is the pitch.

—-

In closing, Arbitrum provides value and receives value from partners like Robinhood.

The 10% share does not include any future deals that may or may not be made between the DAO and partners like Robinhood.

I say like Robinhood because they won’t be the only company that large looking to transform their business and make it programmable.

Early days for @Arbitrum.

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

programmable finance is going to be huge

[Arbitrum @arbitrum]

agentic finance is going to be huge

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

“It’s effectively a digital RWA”

[vibhu @vibhu]

What we tweeted isn’t a meme on another chain. It’s effectively a digital RWA. Trenchers already moving capital off to trade this. It’s no different than our interest in keeping traders on our execution.

It’s not weird timing at all, if Sunrise could have done earlier it would have been better but it took some time.

Guess what, Solana knows how to stay relevant and top of mind at all times. Watch this weekend. That’s the game we consistently win at.

[MSB Intel @MSBIntel]

BREAKING: Arbitrum voters passed the Fast Feed temperature check, selling earlier access to ordered transactions, 97% to the DAO.

Subscribers, aimed at market makers and searchers, would see transactions and their ordering before the public feed; the binding onchain vote comes next.

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@MattLGov you know the opp 🫡🫡

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

Robinhood Chain is quickly becoming a black hole for risk-on capital

No incumbent is safe

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@JohannKerbrat truly an honor to be working with your team

arbitrum under the hood 🫡

[Johann Kerbrat @JohannKerbrat]

The pace of innovation on Robinhood Chain right now is incredible.
We are laser-focused on one mission: building the most secure, scalable, and seamless foundation for real-world assets.

[pibblez @0xpibblez]

imagine if they decided to switch from FCFS to PGA

https://t.co/ifbe6mMR8l

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@cooper_kunz few

[Token Terminal 📊 @tokenterminal]

Block times for Robinhood Chain (100ms) and Solana (400ms).

"Good speed on that."

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@tokenterminal @sgoldfed Good speed on that.

[Arbitrum @arbitrum]

JUST IN: Ten incredible Arbitrum teams from the Arbitrum Mentorship Program are bringing new financial products onchain from tokenized hedge funds to AI credit markets.

Winners to be announced soon. Stay tuned.

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@swmartin19 @Polymarket @fomo @Collector_Crypt @ether_fi 🫡

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@FigoETH @hypermaddd

[Offchain @Offchain]

Robinhood is verticalizing and bringing AI with it.

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

@variational_lvs substantially higher

[Lucas @variational_lvs]

Over 25% of our >$1.2B in OI comes from RWA markets. 33% of volume. Tremendous growth this month, but I’m even more excited for when swaps go live (improving RWA execution dramatically and enabling predictable low carry costs).

[𝗵𝘂𝗻𝘁𝗲𝗿 @bfresh]

something is happening...

[Arbitrum @arbitrum]

Onchain looks good on @RobinhoodApp