Midas has, in collaboration with Axelar and Hyperithm, launched MXRP, the first XRP yield product of its kind that is fully compiled in Defi.
Summary
- With MXRP, users can deposit a transferable ERC-20-token Mint by depositing XRP as collateral, tracking-market neutral yield strategies.
- The product focuses on a basic yield of 6-8% paid in XRP, with extra return possible through implementation in Defi protocols.
- The launch comes in the midst of an increase in the XRP offer, but unlike traditional “earning” products, MXRP stands out as a fully Defi-compatible and offers a composable utility.
Tokenization platform Midas has launched MXRP, a tokenized XRP product that works on the EVM Sidechain of the XRP whides, with infrastructure and interoperability supplied by Axelar.
Users can make MXRP by depositing XRP as collateral, which then follows the performance of underlying yield strategies, such as market formation and liquidity supply. Hyperithm, an external asset manager, will act as the ‘riskurator’, the management of these strategies, Dennis Dinkelmeyer, co-founder and CEO of Midas, told The block. The product focuses on a basic yield of 6-8% paid out in XRP.
In addition to the basic yield, users can implement MXRP in Defi protocols to maximize the income from their XRP interests. “Much of the XRP delivery has been dormant for years; MXRP offers a transparent mechanism for users to access Onchain strategies,” Dinkelmeyer explained.
Georgios Vlachos, co-founder of Axelar, described the structure as MXRP making a “eternal buyer” of XRP, with proceeds generated from strategies used to buy extra XRP which is then divided among MXRP holders. Vlachos added that if MXRP’s AUM grows to $ 10 billion in June next year, the product could generate $ 700 million in annual purchasing pressure for XRP.
Access to MXRP is limited in the US, the UK and other sanctioned areas of law.
How MXRP distinguishes itself in the XRP yield market
The launch of MXRP is amid an increasing number of XRP-oriented yield products that are on the market, such as the self-coasts of Doppler Finance XRPFI Primewho unlocks the proceeds within a hardware report one, and XRP yields recently launched by moremarkets.
However, as Dinkelmeyer explained, they function that “earn” products such as traditional savings or credit accounts, while MXRP is a transferable ERC-20 token that is compatible with Defi. “That composability gives MXRP really a utility than just held,” he said.
It is also worth noting that the XRP yield starts to attract a significant institutional interest. It is striking that Nasdaq-Genten Vivopower recently worked with Flare to use $ 100 million in XRP via Flare’s scalable Fassets Framework, which generates the yield of institutional quality while the return is restored in its participations.
