Uniswap Labs has made TJAR, an open-source fee conversion tool, available to other apps, The Block reports. Apps deposit the fees they collect, in many different tokens, into a jar, and independent searchers compete to convert them into the token the app has chosen. The system, originally built for Uniswap protocol fees, handled more than $15.3 million in conversions in September. Robinhood is the first partner and receives its fees in USDC and USDG.

What it means: TJAR solves a practical problem facing every app that charges fees on decentralised trades: they pile up small amounts in hundreds or thousands of different tokens across many networks. Turning them into something useful, such as a stablecoin, has until now needed dedicated infrastructure. With TJAR, the app sets what it wants to receive and how much, and the market handles the conversion, without the app having to price every token. The involvement of Robinhood, a listed and regulated company, shows traditional platforms now use decentralised tools as part of their infrastructure, especially for crypto features and tokenised stocks. For businesses building crypto apps in Europe, such tools lower development costs, but their use needs checking against MiCA requirements on handling funds and against how revenue is recorded in the accounts. The fact that Uniswap governance may later set a protocol fee for TJAR means the terms could change. For Uniswap itself, opening its infrastructure to others is a way to widen use of its ecosystem.

Read the original on The Block

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