Funded Protocol has launched what it describes as the first decentralized prop-trading infrastructure on Robinhood Chain, allowing users to allocate capital to prop-trading setups and earn yield from the trading activity they generate. The model replaces a traditional prop firm’s balance sheet with on-chain liquidity providers, while smart contracts handle accounting and profit distribution. The first live application is TheNews, a prop firm built around real-world event data. Robinhood Chain’s public mainnet launched on July 1, 2026, as an Ethereum Layer 2 network built with Arbitrum technology and designed to support tokenized real-world assets. Its ecosystem includes Uniswap, Pleiades and Morpho, with Morpho lending products offering approximately 7% APY. Funded Protocol’s FUND token is trading on Uniswap and Flap, but no verified total value locked or user-engagement figures had been reported by late August 2026, leaving the model’s adoption and ability to outperform simpler lending strategies unproven.