XRP enthusiasts looking for ways to earn yield have enthusiastically adopted mXRP, the first liquid staking token native to the XRP ecosystem.
On September 25, Axelar, a blockchain infrastructure provider, announced that the initial vault of mXRP tokens, totaling 6.5 million, was quickly filled within two days of launch, prompting an increase in the cap to 10 million tokens.
The total value of assets locked in the vault has now reached nearly $20 million.
This rapid growth underscores the high demand from investors seeking to utilize dormant XRP through decentralized finance.
Introduction to mXRP
mXRP aims to provide new utility for XRP, a long-standing cryptocurrency that has largely been inactive. Operating on the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain, mXRP allows users to stake XRP through Midas, a tokenization platform, and earn targeted annual yields of up to 8% in the form of wrapped mXRP tokens.
Users begin by bridging their XRP to the sidechain and depositing it into tokenized vaults. These deposits are then invested in yield strategies managed by independent risk curators, with Hyperithm initially taking on this role by directing funds towards market-making and liquidity provision activities.
The returns generated from these strategies are reflected in the value of mXRP, ensuring that holders see direct returns in the token they hold.
Dennis Dinkelmeyer, the co-founder and CEO of Midas, explained the initiative to mobilize dormant capital:
“A significant portion of the XRP supply has been inactive for years; mXRP offers a transparent way for users to access on-chain strategies.”
Enhancing XRP’s Role in DeFi
This project aligns with efforts to broaden XRP’s utility in decentralized markets.
While XRP’s DeFi ecosystem is currently smaller compared to platforms like Ethereum, which boast billions in total value locked, Axelar’s cross-chain framework enables XRP to interact with DeFi applications across multiple blockchains, expanding its reach beyond its native ledger.
Other initiatives, such as Flare Network’s FXRP, are also contributing to this trend. FXRP enables XRP to participate in lending, liquidity pools, and other DeFi applications without losing exposure to the underlying asset.
