After digesting the @evernorthxrp news.
Let's break down what we can expect from @evernorthxrp on the XRP Ledger and what this means for us.
First Evernorth wants to take an active role growing XRP by utilizing the XRPL, very different from ETFs.
1) 🔹Institutional lending.
Very neat as XLS-65 and XLS-66 bring vaults and a lending protocol onto the XRP Ledger natively. Evernorth can borrow against the $1B they raised to earn yield for their fund.
2) 🔹Usage of compliance tools.
We passed the amendments for Decentralized Identity, Credentials and soon Permissioned Domain and DEX. They can be combined with the lending protocol in 1). Important, as Evernorth is a regulated SPAC entity.
Upcoming on chain privacy for the XRPL for covered balances and private transfers of MPTs will also help with institutional onboarding.
3) 🔹Liquidity provisioning.
Automated Market Makers and limit orderbooks are combined the XRPL DEX. Evernorth can strategically provide liquidity for pools of issued assets like RLUSD to generate yield.
Remember when David said how the XRP paired AMM pools give liquidity providers the exposure to XRP price but also actively growth the investment and participate in the ecosystem - perfect!
5) 🔹DeFi yield opportunities.
Making use of tokenized yield bearing assets and services on the XRPL to grow their fund and provide liquidity for builders. Evernorth in my opinion will attract higher quality yield assets on to the XRPL.
Good we did our homework on interoperability with Axelar to have an easy gateway!
5) 🔹Validator participation.
Evernorth will run a Validator on the XRPL to contribute to the liveliness and decentralization of the network. Benefiting from the network in DeFi means you have an inherent incentive to run infrastructure to support the system. The best incentive is no incentive.
6) 🔹DeFi integration.
Evernorth aims to open all gates for RLUSD on the XRPL, easy on/off ramp. But also integration with aggregators and explorers i'd count in as well. Make the XRPL the entry point for institutions into DeFi!
7) 🔹Market Development.
The famous bootstrapping. Evernorth is looking to providing liquidity for participating projects and expand XRPs utility on the XRPL.
In the pursuit of growing the Evernorth fund they indirectly help the XRPL in key areas to grow and be the hub for DeFi that's suited not for the 5% of enthusiasts but for the 95% of average people in the world.
It feels everything is coming together and i can't wait to see everyone participating and supporting this effort.
Here we come!