More DeFi Presence for XRP as Asset Nears Integration Into THORChain

THORChain has announced the imminent integration of XRP into the protocol’s mainnet, offering massive benefits to XRP and RUNE holders.

The decentralized liquidity platform shared in a tweet on Tuesday, April 29, that XRP swap is coming to its protocol. The much-anticipated integration will bring decentralized finance (DeFi) presence to XRP, with THORChain tapping into XRP’s massive trading volume.

Integration Much Bigger Than You Think

THORChain is a decentralized cross-chain liquidity provider that enables seamless swaps across supported networks without relying on centralized exchanges or wrapped tokens. The platform bridges swaps between Bitcoin, Ethereum, BNB, and five other assets.

On April 11, the network announced that XRP swaps are now live on stagenet, its testnet. THORChain revealed that it would make the third-largest cryptocurrency by market cap the next asset available for decentralized trading on the protocol, with mainnet integration slated for May.

Notably, the integration, led by Strangelove and THORChain’s core developers, Nine Realms, will introduce native, non-custodial swaps for XRP holders. This allows users to swap the token for other supported coins on the platform directly through self-custody wallets and without the need for centralized exchanges or wrapped tokens.

Furthermore, the announcement emphasized the importance of this support for both chains. First, XRP ranks third among tokens in the crypto market with the highest trading volume. With an average daily liquidity of $2 billion, the massive volume would lead to increased swaps, which in turn could amplify protocol generation fees and yields for the THORChain ecosystem.

Consequently, the addition will bring a better DeFi presence for XRP, which has most of its trading controlled by centralized exchanges. Additionally, it will spell the end of wrapping, synthetic derivatives, and intermediate custodial solutions for XRP swaps.

Extra DeFi Functionalities for XRP

Interestingly, THORChain teased that the integration would also set the pace for DeFi functionalities for XRP. It shared that the support lays the groundwork for expansion to the Rujira Network, an application built atop the THORChain.

The Rujira alliance offers specific functionalities, including over-the-counter (OTC) trading, interoperability, and DeFi features. Meanwhile, THORChain suggested that XRP’s integration could eventually lead to the introduction of native lending, perpetual trading, and spot order books for the asset’s holders.

Notably, a lack of native DeFi functionalities on the XRP Ledger has been a pain point for XRP enthusiasts. While Ripple aims to change this narrative with the imminent new programmability, protocols like Flare have also taken the initiative to offer DeFi features to XRP holders.

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