Non-custodial lending on Robinhood Chain
Farlight brings holders of tokenized stocks and lenders of USDG together on one order book. Borrowers pledge Stock Tokens and name their ceiling. Lenders price the risk and fund a slice. The contract settles the overlap at a fixed rate for a fixed term, and every fill, repayment and liquidation is visible to anyone.
How it works
01A borrow request on Farlight is a small syndicated loan. Someone wants 20,000 USDG against tokenized NVDA, and three lenders or thirty can fund it, each taking a pro-rata slice at a rate they chose. Slices are isolated. The lender who priced the risk is the one holding it.
A borrower posts collateral, the USDG they want, the highest APR they will pay, a term from 7 to 90 days and a deadline for fills.
Lenders sign EIP-712 offers off-chain. No gas, cancellable at any time, aimed at one request or left standing on the book like a limit order.
One transaction checks every signature and eligibility, escrows the collateral, pulls USDG from each lender and mints a slice token for each of them.
Interest is simple and fixed, counted per second. Once the minimum interest period has passed the borrower can repay whenever they like.
Before maturity the borrower can open a rising-rate auction. New lenders step in, old lenders are paid out, and there is no cliff at the end of the term.
If the health factor falls below 1.0, anyone can start a 45 minute Dutch auction. Lenders are paid first. Whatever is left goes back to the borrower.
Market
02Farlight replaces the utilisation curve with a negotiation. Borrowers name a ceiling, lenders name a price, and the contract settles whatever overlaps.
For borrowers
01Connect Robinhood Wallet or any EVM wallet, choose the Stock Tokens you want to pledge, and see what you can borrow at each LTV tier with an indicative rate from the live book.
For lenders
02Filter open requests by collateral, LTV, term and APR. Sign an offer in one click with no gas. Post standing offers across a whole tier so borrowers always see a live book.
For everyone
03The Observatory lists every loan: collateral, oracle price at origination, rate, syndicate, repayment status and liquidation history, each with a link to the transaction on Blockscout.
Positioning
03Aave Horizon, Morpho vaults and Kamino are the right tool for liquid, curated collateral. They struggle with single-name stocks, thin DEX liquidity, weekends when the market is closed, and private-company tokens. That tail needs per-loan pricing and fixed terms.
Rate
Pooled market
Utilisation curve, variable
Farlight
Negotiated, fixed per loan
Term
Pooled market
Open-ended
Farlight
Fixed, with refinancing auctions
Collateral
Pooled market
Curated, liquid, capped
Farlight
Any oracle-priced Stock Token, long tail through lender-set LTV
Risk sharing
Pooled market
Socialised across the pool
Farlight
Isolated per lender and per syndicate
Bad debt
Pooled market
Hits everyone
Farlight
Hits the lender who priced it
Idle capital
Pooled market
Earns the pool rate
Farlight
Parked in a pool until matched, then earns the P2P spread
Recovery
Pooled market
Pool liquidation into DEX liquidity
Farlight
Dutch auction with bounded floors, or in kind to the lender
Farlight sits alongside Morpho on Robinhood Chain rather than replacing it. Morpho is where idle capital waits, and it is the liquidity backstop for liquidations.
Robinhood Chain
04Robinhood Chain is the only network where tokenized equities arrive as ordinary ERC-20s, with Chainlink feeds, permissionless deployment and a broker's own distribution behind them. A lending protocol needs exactly that combination.
Tokenized AAPL, NVDA, SPY and more, issued by a listed broker and backed one to one by shares in custody. Self-custodied, no transfer hooks, and ERC-8056 keeps dividends and splits inside the token.
Data Feeds for health checks, Data Streams for liquidation pricing, a market status flag for closed sessions and a Sequencer Uptime Feed so an outage is handled on purpose rather than by accident.
The Paxos Global Dollar is native to the chain, regulated under MiCA in the EU and already the lending asset in Robinhood Earn. Further markets in USDe or USDC can be added as isolated configurations.
Blocks every 250 ms, preconfirmations in 100 ms and a median transaction cost near a tenth of a cent. Fills and liquidations settle before a price gap has time to widen.
ERC-4337 entry points and EIP-7702 are live, so lenders sign offers without gas, borrowers approve and borrow in one step, and smart accounts verify through EIP-1271.
Morpho Blue, Uniswap and 1inch are deployed. Idle lender capital parks in a Morpho USDG vault, and liquidation auctions have arbitrageurs standing by.
Telemetry
05Recovery on Farlight is a smart-contract auction, never a legal process. Only liquid, oracle-priced, on-chain collateral is accepted, tiered by liquidity and feed quality rather than by name.
Deepest DEX liquidity on the chain
Lenders opt in per token
Maturity default only, professional lenders, on the roadmap
Current parameters. Every change goes through the timelock and is published in the governance log.
Collateral value times liquidation LTV over debt. Below 1.10 the borrower is warned and asked to top up. Below 1.00 anyone can start the auction.
Collateral is offered from oracle plus 3% down to a floor over about 45 minutes. Arbitrageurs, authorised participants or the lenders themselves can take it.
When the market is closed or the feed is stale, LTV ceilings drop and the auction floor is held at 85% of oracle. Friday's close is not Monday's open.
No liquidations for an hour after the sequencer returns, and every function stays reachable through the L1 delayed inbox, so repayment can never be censored.
Zero or negative prices are rejected, staleness is bounded per session, a single move over 25% pauses for review, and corporate actions halt the market until the feed resumes.
The protocol prices the exact token in escrow, never a wrapper or a derived exchange rate. That one rule would have prevented the wGOOGLx loss in July 2026.
Lessons already priced in
06The last cycle of RWA lending left a clear record of what fails. Farlight is designed around that record rather than in spite of it.
Observatory
07A lending market is only as trustworthy as what an outsider can verify about it. These are the commitments the protocol ships with, and the Observatory is where you check them.
Offer fills, repayments, refinances, auction starts and settlements, parameter changes. Each one links straight to Blockscout.
The live book with collateral, LTV, rate, term, syndicate size, health and the oracle price at origination.
LTV distribution, concentration by token, the bad debt ledger and liquidation history with realised prices against oracle.
Current Chainlink price, session status, staleness and multiplier per token, plus issuer proof of reserve where a feed exists.
Every timelock proposal and execution, listed with its rationale before it takes effect.
Contracts, relayer, indexer and keeper bots under a permissive licence, with reproducible builds.
The off-chain book can be exported in full. Anyone can run a relayer and see exactly the same offers.
Funds move only at settlement, through Permit2 or a prior approval. Repayment and withdrawal are never pausable.
Roadmap
08Farlight launched with conservative LTVs, a visible cap per token and a public risk page. Each step below opens only when the data from the last one supports it.
Index, mega-cap and large-cap Stock Tokens against USDG with fixed terms of 7 to 90 days, standing and targeted offers, refinance auctions, idle-capital parking and the Observatory.
Professional lenders and verified borrowers, per-token exposure caps, timelocked parameters.
Session-aware haircuts, Dutch auctions with bounded closed-market floors, in-kind liquidation, sequencer-outage grace and exact-token oracle pricing.
Every liquidation and its realised price against oracle is on the Telemetry page.
Tier C Stock Tokens with a live Chainlink feed, opened market by market as DEX depth and auction data support it. Negotiated Tier D loans for professional lenders follow.
Caps grow with evidence, not ahead of it.
Opt-in tranching inside a syndicate, so lenders who want more yield can take first loss while senior slices are paid first.
Bridged treasury and fund-share collateral with NAV oracles, a secondary market for slice tokens, and retail lending in each jurisdiction where it is permitted.
Parameter control moves from the foundation multisig to a governance module that keeps the timelock, the public rationale and the guarantee that repayment can never be paused.
First light
Post Stock Tokens and borrow USDG in one transaction, or sign an offer and let the book match you. Verified lenders and borrowers can be active within minutes, and every fill settles on Robinhood Chain.
usefarlight.com · chain ID 4663
