Introduction

When it comes to decentralized finance, XRP has mostly been excluded due to the nature of XRP Ledger (XRPL) on which it is used as a gas token. The biggest reason why is that XRPL hasn't incorporated smart contract capabilities so far. In other words, developers cannot write and deploy smart contracts to XRPL for others to run custom logic. Instead, XRPL defines a set of predefined transaction types.

Although a subset of predefined transaction types like AMMBid can be used to participate in certain DeFi-like activities like swaps, for new transaction types to be added they must be proposed to and voted on by XRPL validators, which is a time sensitive and permissioned process. This places a clear limitation on DApp developers' creativity and DeFi expansion.

This was the case until Ripple committed to building an EVM compatible sidechain, partnering with Axelar to enable seamless cross-chain communication between the XRPL and XRPL EVM sidechain, as well as any other chains that are connected to Axelar. With programmability and smart contract functionality unlocked, XRPL native assets such as XRP can be transferred to other chains, enabling the potential for huge capital utilization that has been inherently locked within the XRPL alone.

Strobe Protocol positions itself to best take advantage of and create value from this ongoing development. It is built on XRPL, Axelar and the XRPL EVM sidechain, providing a seamless and efficient yield experience for XRP holders.