DeFi
Anodos to introduce institutional DeFi to the XRP ledger
Anodos, a Web3 protocol based on XRPL, seeks to introduce institutional DeFi into the growing XRP Ledger ecosystem.
Introduced in 2012, the XRP Ledger has not progressed as much in terms of infrastructure as its main competitors, such as Ethereum and Stellar, despite these chains launching years later. For example, the Stellar network welcomed smart contract capabilities in February. Meanwhile, XRPL has not yet been implemented Hooks on the main network.
Anodos’ Paridim to introduce institutional DeFi on XRPL
Additionally, institutional DeFi on XRPL remains untapped territory. Anodosa Web3 utility resource built on top of the XRP Ledger, seeks to explore this area in the absence of crucial developments from leading development teams like Ripple.
In a note obtained by The Crypto Basic, Anodos details its plans to introduce institutional DeFi into the XRPL ecosystem via the launch of Paridimits liquidity and digital asset management platform specially designed for institutional clients.
Details about the upcoming project remain scarce at the time of publication, but reports suggest that the platform would offer institutions the opportunity to leverage the attractive features of XRPL’s growing DeFi ecosystem, including the recently introduced. AMM functionality. Notably, XRPL now has 504 active pools, with 4.5 million XRP locked.
A focus on regulatory compliance
This figure could see a significant increase with the introduction of institutional players into the market. According to Anodos, Paridim seeks to foster a regulatory-compliant environment for institutional adoption, thereby addressing growing concerns regarding legislation on global DeFi activities, particularly in the United States.
While the broader DeFi ecosystem has avoided regulatory drama due to its decentralized nature, the US Securities and Exchange Commission (SEC) recently issued a Wells notice to the largest decentralized exchange (DEX) Uniswap, declaring its intention to take legal action against the company for allegedly trading unregistered securities.
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Furthermore, the SEC, in a 247-page presentation, propose a rule to require registration of DeFi entities facilitating the transaction of assets worth more than $50 million on AMMs. Such developments have raised concerns among potential institutional investors.
The Growing DeFi XRPL Ecosystem
Anodos’ decision to launch Paridim comes as the XRPL ecosystem is now poised for impressive expansion, with its DeFi capabilities bolstered by recent developments led by the developer community. Notably, the community recently welcomed the XLS-30D, which introduced AMM functionality to Ledger.
Additionally, Ripple, the largest holder of XRP, is looking to launch several projects to further strengthen the XRPL DeFi ecosystem. These projects include a EVM sidechain in partnership with Peersyst, a native lending protocoland originating Dollar-backed stablecoin. Amid these upcoming developments, the DeFi scene could see a significant boost.
Anodos seeks to capitalize on this expansion, positioning itself as an institutional pioneer, a move many expected from Ripple. Notably, as part of its larger plan, Anodos recently became a UNL validator on XRPL. Meanwhile, Panos Mekras, co-founder of Anodos, continued to educate the XRP community on the growing DeFi ecosystem of XRPL.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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