Pseudonymous XRP Ledger community enthusiast who goes by @Vet_X0 on X, founder of XRPL-based NFT marketplace and operator of a dUNL validating node, expressed his deep concerns about the possibility for XRP to end up being injected into "custodial DeFi."
XRP doesn't need "custodial DeFi": Opinion by XRPL innovator
Holders of Ripple-linked altcoin XRP should never put their holdings in "custodial DeFi" even if it is promoted by KOLs and influencers. Instead, the community should be tasked with reinventing the very foundation of global finance.
Such statement was shared by @Vet_X0, the founder of XRP Cafe NFT marketplace and xrp.vet validator of XRP Ledger dUNL infrastructure.
Actively supporting and contributing to development of truly non-custodial applications is the only way to achieve such an ambitious vision, he concludes.
As covered by U.Today previously, in recent months, the XRPL ecosystem made a number of announcements that signal a new phase of DeFi progress for XRP and related assets.
Tomiwabold OlajideXRPL now has its native class of smart contracts and on-chain price oracles that pave the way for more DeFi designs coming to this veteran blockchain.
Flare's founder warns XRPL community about "Celsius 2.0" dangers
As per DefiLlama tracker, XRPL DeFi TVL exceeds $80 million, while RLUSD, a dominant XRPL-centric stablecoin, exceeded $100 million in market capitalization.
Hugo Philion, CEO and founder of Flare (FLR) blockchain, which initially was started within the XRP ecosystem, agrees with the speaker. Philion opines that centralization trade-offs for many novel XRP-centric products might be too large:
Some of the projects I’m seeing launch around XRP are taking immense shortcuts. If the protocol you are using for your XRPFi (and BTC & DOGE) isn’t built with decentralization at its core then it’s essentially Celsius 2.0
This trend, in turn, was among the reasons for Flare (FLR) to be developed, he admitted.
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