Ripple's new stablecoin RLUSD has seen explosive growth, with users supplying $76 million worth of RLUSD on Aave in just four days.
output: Recently, there has been a buzz around Ripple’s stablecoin, RLUSD, as it showcases rapid growth. In just four days, users have poured an impressive $76 million of RLUSD into Aave, a premier DeFi protocol, reports AZCoin News.
Aave V3 Ethereum Core market now enables users to earn interest by lending RLUSD and borrow from the protocol. However, to mitigate risk, borrowing is limited to $10 million, and RLUSD isn’t yet available as collateral for borrowing.
Moreover, Aave is still in the process of enabling RLUSD for use in its V3 market. Currently, it’s only listed in V3 Ethereum Core, while V3 markets for other chains like Binance Smart Chain, Polygon, and Optimism are still pending.
Despite these limitations, RLUSD’s total market cap is quickly approaching $300 million, a testament to its strong early adoption.
Recently, Ripple also executed the transfer of 27 million RLUSD tokens between Ethereum and the XRP Ledger. This movement was carried out using a burn-and-mint process to help the stablecoin maintain its peg to the U.S. dollar across both chains.
Although RLUSD is Ripple’s stablecoin, a significant portion of it is issued on Ethereum rather than the XRP Ledger. Out of the nearly 294 million tokens, only 94 million are on XRP Ledger. In contrast, the majority, more than 200 million tokens, are on Ethereum.
Launching RLUSD on Ethereum grants Ripple access to nearly instant liquidity and broader user adoption, thanks to well-established platforms like Uniswap, Aave, and Curve.
Ripple has long been a supporter of a multichain future, and placing RLUSD on Ethereum, where the users are, aligns with that strategy. This initiative could pave the way for future expansion to other chains like Cardano, Solana, or Avalanche.
