mXRP Launches as the First Fully DeFi-Compatible XRP Yield Product

Midas, together with Axelar and Hyperithm, has introduced mXRP, the pioneering XRP yield product designed to be fully compatible with decentralized finance (DeFi).

Key Takeaways

mXRP is the first XRP yield product fully compatible with DeFi, launched by Midas, Axelar, and Hyperithm.
Users can create mXRP by depositing XRP as collateral, with an expected base yield of 6-8% paid in XRP.
mXRP allows users to maximize their returns by deploying the token across various DeFi protocols.
The product aims to reactivate dormant XRP supply and is projected to generate significant buying pressure in the market.
Accessibility to mXRP is limited in certain regions, including the U.S. and U.K.

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The mXRP token operates on the XRP Ledger’s EVM sidechain, utilizing Axelar's infrastructure for interoperability. Users can generate mXRP by using XRP as collateral, which subsequently participates in various yield strategies like market-making and liquidity provision. Hyperithm will oversee these strategies as the asset manager. mXRP aims to provide a base yield of 6-8% in XRP, while also allowing users to leverage their mXRP in other DeFi protocols to enhance their returns. Restrictions apply for users in the U.S., U.K., and other sanctioned areas.

The Unique Aspect of mXRP in the XRP Yield Market

The arrival of mXRP coincides with the increasing number of yield products focused on XRP, such as Doppler Finance’s self-custody XRPfi Prime and recent XRP yield accounts from MoreMarkets. However, as noted by Dinkelmeyer, other “Earn” products resemble conventional savings or lending accounts, while mXRP stands out as a transferable ERC-20 token that fits seamlessly into the DeFi landscape. “That composability gives mXRP real utility beyond just holding it,” he emphasized.

Additionally, institutional interest in XRP yield is gaining traction. For instance, Nasdaq-traded VivoPower has recently aligned with Flare to invest $100 million in XRP through its scalable FAssets framework, aiming to generate yield suitable for institutional standards while reinvesting profits back into its holdings.