The XRP/RLUSD pool on XRP Ledger displays an estimated annualized yield of 4.7%, or about 0.09% over seven days, but the income depends on trading volume and is not guaranteed. On an unchanged $10,000 position, fees would represent about $9 before costs. Joining the pool turns the position into a changing mix of XRP and a stablecoin, reducing exposure to XRP during a rally but also during a decline. In a scenario where XRP rises by 20%, the pool would be worth about $10,954, compared with $11,000 for an unchanged 50/50 allocation and $12,000 for holding only XRP. The weekly yield would offset the modeled rebalancing shortfall against the 50/50 allocation only if XRP fell by about 8.1% or rose by about 8.9%, while RLUSD adds issuer, asset-freezing and redemption risks.
Source: Read the original article
