Jack Paul 
How Robinhood Earn Works
Users buy USDG, a dollar-backed stablecoin issued by Paxos through the Global Dollar Network, inside Robinhood Crypto. They then lend it through a self-custody wallet without ever leaving the app. The wallet is managed by the user via RHNC and Privy, so Robinhood never holds the keys or the funds. USDG is deposited into a Morpho vault curated by Steakhouse Financial, which spreads it across Morpho’s lending markets. Borrowers post collateral from partner protocols to take out USDG loans, and the interest they pay funds the roughly 7% yield. Settlement runs on Robinhood Chain. The rate is variable, so if borrowing demand cools, the yield can fall below 7%.
Robinhood also procured insurance through Lloyd’s of London and RELM, but the coverage is narrower than it sounds. The policy addresses losses from cyber attacks and smart contract exploits. It does not insure against market losses, yield compression, or a USDG depeg. On-chain lending is not FDIC- or SIPC-protected.
Why This Is Big For Morpho, Ethena, Spark, and Maple
Morpho is the core winner here. It serves as the underlying credit network, meaning Robinhood’s roughly 28 million funded customers now sit on top of Morpho’s infrastructure, whether they know it or not. For a protocol positioning itself as the lending layer behind mainstream fintech, this is a major distribution milestone. Morpho held more than $7 billion in total value locked across chains and closed a $175 million funding round in June, valuing it at over $2 billion. The other three protocols – Ethena, Spark, and Maple – supply the borrowing side. Steakhouse Financial, which curates the vault, manages around $2.2 billion across 51 Morpho vaults as of July 8. That curation layer is what lets Robinhood ship an on-chain product with a defined risk framework.
What Is Robinhood Chain, and Why Is Its TVL Surging?
Robinhood Earn settles on Robinhood Chain, the company’s permissionless Ethereum Layer 2 built on the Arbitrum stack. It launched its public mainnet on July 1 during the “Robinhood Presents: The World is Flat” keynote in London, and is pitched as an institutional-grade home for tokenized real-world assets, including Robinhood’s Stock Tokens. The launch-week numbers are the headline. Robinhood Chain’s total value locked crossed $100 million within a week and sat near $106 million on July 8, up about 159% in 24 hours, according to DefiLlama. For a chain that is just days old, nine figures is a real signal. Of that roughly $106 million, about $90 million sits in Morpho, with Uniswap a distant second at around $14 million. The single biggest push came from Ethena, which seeded around $50 million into the Steakhouse USDG vault. Robinhood is covering gas fees for the chain’s first 90 days on top of that. Early liquidity on a new chain typically comes from DeFi-native capital chasing yield and incentives before retail arrives, and Robinhood Chain is no exception.