An eager to yield opportunities, XRP holders quickly embraced MXRP, the first liquid staking token native to the token ecosystem.
On September 25th, blockchain infrastructure provider Axelar revealed that the first safe of the 6.5 million token product that was buried within two days of its launch had risen to 10 million.
In particular, the total amount of assets locked in the safe is close to $20 million.
This rapid expansion underscores the pent-up demand from investors seeking to place dormant XRP to exercise through decentralized finance.
What is MXRP?
MXRP is designed to unlock XRP’s fresh utility. It remained idle for years despite being one of Crypto’s oldest assets.
The tokens built on top of XRP Ledger’s Ethereum Virtual Machine (EVM) Sidechain allow users to wager XRP through the tokenization platform Midas. In return, they receive a rap representation (MXRP) that allows them to earn targeted annual yields of up to 8%.
This process begins when the XRP is bridged to the sidechain and deposited in a tokenized vault. These deposits are assigned to yield strategies supervised by independent managers known as “risk curators.”
At the launch, HiPerim took on the role and directed capital towards market production and liquidity provisioning activities.
The performance of these strategies ensures that they return to the value of MXRP itself and return directly to the owner-owned tokens.
Dennis Dinkelmeyer, co-founder and CEO of Midas, has framed an initiative to mobilize the capital for many years.
According to him:
“Many of the XRP supply has been dormant for years. MXRP provides a transparent mechanism for users to access on-chain strategies.”
Expanding the role of XRP in Defi
Meanwhile, the project reflects a broader movement to make XRP more versatile in a decentralized market.
XRP’s Defi ecosystem pales significantly in comparison to rivals like Ethereum, where total value is locked.
With this in mind, Axelar co-founder Sergey Gorbunov emphasized that the protocol’s cross-chain framework allows XRP, which was traditionally limited to its own ledger, to interact with Defi applications across multiple blockchains.
In particular, other initiatives are pushing up in the same direction as evidenced by the recent launch of Flare Network’s FXRP.
FXRP allows XRP to be used for lending, liquidity pools, and other debt applications without sacrificing exposure to underlying assets.
