Ripple USD (RLUSD) has experienced impressive growth with its main liquidity protocol, Aave.
Users have deposited RLUSD totaling $76 million worth of RLUSD within just four days.
On April 21st, Aave announced that users can begin offering and borrowing Stablecoin on the latest version of the protocol, the Aave V3 Ethereum Core Market.
This essentially means that users can gain interest by offering RLUSD and borrowing tokens. It is worth noting that Aave does not allow Stablecoin to be used as collateral.
According to data provided by Aave, popular Stablecoin borrowings are currently at $10 million. This is intended to prevent risk from new assets. Loans may explain why RLUSD is relatively low (currently at 14.86%).
RLUSD's market capitalization is approaching $300 million
Meanwhile, according to Coingecko, RLUSD's total market capitalization is currently close to $300 million.
The company expects that RLUSD, released in December, could become its biggest token by the end of 2025.
On Thursday, Ripple burned and minted 27 million tokens. This is data provided by popular social media trackers show. This is known as the “burn-to-mint” process.
In this way, Ripple moves the token between the XRP ledger and Ethereum, ensuring that Stablecoin maintains its peg. Cross-chain transfer occurs with a delay of approximately 20 seconds.
Of course, such “burns” are not DEFLationary, given that only a small XRP network fee is spent during such transactions.
Stablecoin is currently only available in two chains, but may appear on other networks such as Cardano.
