Q: Do I have to trust MoreMarkets with custody of my XRP? Who controls the vault?

A: No single party (including MoreMarkets) has custody over your XRP. The design is non-custodial. When you deposit, your XRP goes into a smart contract vault on XRPL that is controlled by NEAR Protocol’s decentralized MPC (Multi-Party Computation) network. 

A decentralized network of guardians (using MPC on NEAR) holds fragments of the vault’s key and must collectively sign off to move funds. 

MoreMarkets as a company cannot unilaterally withdraw your XRP; only valid user actions (like a withdrawal intent accompanied by burning of your moreXRP on Ethereum) will trigger the vault to release funds. 

We explicitly state that we never hold your keys, and your XRP stays in a self-custodial vault under your control at all times. In practical terms, this means you always have the ability to withdraw your assets through the protocol’s defined processes, and no centralized custodian can run away with your tokens. 

The vault and bridging mechanisms undergo security audits by top firms such as Halborn, Sherlock, and Sigma Prime, with reports to be published soon after launch.

Q: If my XRP stays on XRPL, what exactly is earning yield on other chains? Where does the APY come from?

A: The yield comes from deploying the value of your XRP into DeFi lending markets on other chains. As described above, when you deposit XRP, the system borrows a USD-pegged stablecoin (RLUSD) against it and lends that stablecoin out on Aave to earn interest. 

The current strategy’s APY is based on the interest earned from Aave minus the cost of the loan. For example, if Aave’s supply rate for RLUSD is ~10% and the RLUSD loan costs ~4% in interest, the net yield is about 6% annually on the amount borrowed. 

Relative to your XRP deposit, that translates to roughly 6-7% APY in the scenario given (since about half the value was deployed). This is why some headlines noted yields up to the high single digits or more. The reason such a high yield is possible even though XRP itself isn’t generating it is that the strategy taps into a different market: demand for USD liquidity on Aave. 

RLUSD is a new stablecoin and borrowers are willing to pay higher interest for it (or there may be incentive programs on Aave), resulting in ~10% supply APY. By effectively converting XRP into a stablecoin and supplying it, the protocol captures this yield. It’s analogous to earning interest in dollars using your XRP as collateral. Importantly, the APY is not coming from anything magical with XRP; it’s coming from real borrowers’ interest payments in DeFi. 

The rates will fluctuate with market conditions. If Aave’s RLUSD demand drops, yield will go down (and vice versa). MoreMarkets may introduce additional strategies (e.g. other lending platforms or yield farms) to enhance returns in the future, but all yield ultimately derives from DeFi activities like lending or liquidity provision.

Q: Is the advertised APY guaranteed? Could it change over time?

A: The APY is variable, not guaranteed. It depends on the performance of the underlying DeFi strategy. The current base strategy (RLUSD on Aave) has a certain interest rate today, but this will change with market supply-demand. 

For instance, if many people lend RLUSD, the rate will decrease; if many borrow RLUSD, the rate could increase. 

MoreMarkets may adjust strategies over time to keep yields competitive, so your APY can fluctuate. You can always check the latest rate in the app, and we’re adding detailed strategy information soon for full transparency. 

As a user, you should treat the yield as an estimate, not a fixed promise. 

That said, the protocol aims to optimize for a relatively stable net positive yield (the spread between what it earns on Aave and what it pays on the loan). There may also be future incentives or tweaks (for example Aave offers rewards).

Always check the latest rate in the app and note that real DeFi yields can go up or down.

Q: Are my funds locked up? Can I withdraw my XRP at any time?

A: In the long run, you will be able to withdraw at any time, but during the initial beta launch there is a structured cycle (or phase). 

MoreMarkets’ vault is designed so you can request a withdrawal anytime. The protocol securely unwinds the strategy before releasing funds, which typically takes just a few days. Your XRP always remains in a self-custodial vault under your control throughout this process.

However, as of the mainnet beta launch, the team has imposed “phases” or cycles to build sufficient initial liquidity. In the current beta, if you deposit now, you won’t be able to withdraw your tokens until the ongoing phase ends (~2 weeks).

This period-based approach is temporary, to gather enough pooled liquidity to efficiently generate yield. Essentially, we batch deposits and keep them deployed for the duration of a cycle. Once a cycle unlocks, users can withdraw their principal and accumulated yield. Over time, we plan to move toward a more flexible withdrawal model as strategies evolve.

Outside of any explicit phase lock, withdrawals simply require the time to perform the necessary onchain transactions (see next question), with timing depending on the underlying strategy.

Q: What happens when I withdraw? What’s the process to get my XRP back?

A: Withdrawing triggers the protocol to reverse the strategy steps automatically. In summary, the smart contracts will: (a) withdraw the RLUSD stablecoins from Aave (including any interest earned), (b) use those stablecoins to repay the RLUSD loan on Term Finance along with any accrued interest, which releases the moreXRP collateral, (c) burn the moreXRP tokens on Ethereum (since they are no longer needed), and simultaneously (d) signal to the XRPL vault to unlock your original XRP and any earned XRP yield and send it back to your XRPL wallet. All of this happens behind the scenes when you confirm a withdrawal in the app. 

From the user perspective, you initiate a withdrawal, and the protocol begins processing it onchain. Withdrawals typically complete within up to 2 days, depending on vault liquidity and strategy steps, and we are actively working on enabling instant withdrawals. No manual actions required from you. Once complete, your vault balance goes to zero, and your XRPL wallet receives your original XRP.

Because multiple actions across different platforms are needed, there might be a slight delay (and minimal network fees), but it is automated. There is no need for you to manually unwind each leg, the intent-based design handles it. The end result is that your vault balance goes to zero (since you’ve withdrawn) and your wallet now has your original XRP plus any interest in XRP that was earned.

Q: How often is the yield paid out or updated?

A: The yield is effectively accruing in real time on Aave (interest accumulates every block for lenders). MoreMarkets will be periodically converting and crediting this yield to your XRPL balance. 

From the user standpoint, your yield is paid automatically to your XRPL wallet on a weekly basis.

The exact frequency of yield conversion will be defined after this initial beta phase. The important point is that you do not need to manually claim yield rewards as the system automatically routes the yield back to the XRP Ledger vault for you. 

Q: What are the risks? Could my position be liquidated or funds lost?

A: Here are the main risks to be aware of:

1. Collateral Liquidation:
   If XRP’s price drops dramatically, the value of your moreXRP collateral on Term Finance could fall below safe levels. The protocol uses 50% LTV to provide a big buffer, but extreme volatility could still threaten the loan’s collateral ratio. 
   
   If XRP lost a large portion of its value, though a 50% intraday drawdown has never happened in its history, the Term Finance platform might liquidate some of the moreXRP collateral: essentially, it would sell off enough XRP (from the vault) to pay down the RLUSD loan and protect the lender. 
   
   This works similarly to a margin loan, which carries some risk when borrowing against an asset. The 50% starting LTV and active risk management provide a strong buffer, but in the event of a significant XRP price drop, part of your position may be used to cover the loan. MoreMarkets will be monitoring positions and adjust parameters or repay some loan preemptively if a downturn occurs.
   
   

2. Smart Contract and Bridge Risk
   The security of the system depends on established technologies such as NEAR Protocol, Ethereum smart contracts, and the XRP Ledger.
   
   For instance, a bug could conceivably allow an exploit of the vault or the minted tokens. The cross-chain mechanism could also be attacked if a majority of guardians were compromised (which is very unlikely given all these are known businesses operating as staking nodes across many networks including Flare, NEAR, and Ethereum).
   
   Additionally, by keeping XRP on its native chain and only transmitting proofs, the attack surface is reduced compared to traditional bridges. 
   
   There is no wrapped token floating freely without backing. Every moreXRP is backed by locked XRP, and the locking mechanism is guarded by decentralized signers. 
   
   This reduces the risk of bridge exploits that have affected fully custodial bridges in the past.
   
   

3. Stablecoin and DeFi Protocol Risks
   The yield strategy involves RLUSD, Aave and Term Finance. 
   
   

   • RLUSD is a relatively new stablecoin by Ripple; it’s designed to be fully backed and stable, but like any stablecoin, there is a small risk (e.g., depegging if something went wrong with reserves or if liquidity dries up). 
     
     

   • Aave’s interest rates can be variable, and in extreme cases of market stress, liquidity for withdrawing RLUSD from Aave might be temporarily scarce (meaning the protocol might have to wait or offer an incentive to get the RLUSD back). These scenarios are unlikely under normal conditions and the platform would presumably halt new deposits if underlying systems became unstable. 
     
     

   • Term Finance, with a DeFi Safety score of 93%, has been audited by industry leaders such as Certora, Sigma Prime, and Runtime Verification, though like any lending protocol, it still carries some potential risk of smart contract bugs or oracle failures.

Overall, we use well-established components and have undergone multiple audits to reduce potential risks. The main considerations are market risk (XRP price volatility) and technical risk (smart contracts/bridge). 

Our team has taken steps to minimize these by maintaining a conservative LTV and implementing high-quality audits and MPC design.

Q: What does “intent-based” mean in this context?

A: An intent-based system is a paradigm where users define what they want to achieve (their intent) rather than explicitly specifying how to achieve it (the execution path). 

The system then interprets this intent and constructs, optimizes, and executes the necessary actions to fulfill it.

MoreMarkets leverages NEAR Intents to pay the yield back in the XRP Ledger in XRP. Our ystem automatically swaps RLUSD back to XRP, so that you can claim your earnings in XRP. 

This happens all in the background; you just trigger the process with a single user action, and MoreMarkets facilitates it all in the background.

This improves user experience and reduces the chance of user error. It’s analogous to how a user might place a trade on a centralized exchange by expressing the intent to trade, and the exchange handles matching and execution behind the scenes. 

Q: How can I verify what the protocol is doing with my XRP? Is there transparency?

A: Transparency is a key promise of MoreMarkets. When you deposit XRP, that transaction on the XRPL is visible on an XRPL explorer showing the funds going into the vault address. 

The corresponding moreXRP mint on Ethereum is recorded on Ethereum’s blockchain. The borrowing on Term Finance and the supply to Aave happen via smart contracts that are also queryable. 

After the current beta phase, we will publish full details on yield sources and Term Finance. The combination of onchain transparency and third-party audits provides assurance that there’s no hidden activity. 

In summary, you don’t have to blindly trust, you can verify. The protocol’s design and the shared addresses mean any user can monitor the system’s health and your share within it.

Q: Has the protocol been audited? Is it safe to use?

A: Yes, MoreMarkets has undergone multiple security audits by industry-leading firms. 

The protocol has been audited by Halborn, Sherlock, and Sigma Prime. These firms have reviewed the smart contracts and the MPC integration to catch vulnerabilities. Even more audits are scheduled as new features come online. 

Aside from audits, the choice of using well-known protocols (Aave, Term Finance) adds confidence, as those pieces have their own security track records. 

The NEAR MPC Network is a cutting-edge approach, but it’s conceptually similar to proven decentralised systems like Fireblocks, Wormhole, and Chainlink’s CCIP in that it uses multiple nodes to sign off on cross-chain events. 

By distributing trust among several institutional-grade parties, MoreMarkets avoids single points of failure while keeping security at the top level. 

Compared to unverified high-yield schemes, MoreMarkets offers a far safer approach with its audited, non-custodial architecture. 

It’s built to deliver the simplicity of a fintech product while running entirely on decentralized smart contracts. 

Q: Is MoreMarkets regulated? Who is behind the project?

A: MoreMarkets is run by a team of experienced engineers and finance professionals. The co-founders include former engineers from NEAR Protocol and IBM, and ex-bankers/traders from institutions like Deutsche Bank, Standard Chartered, and Nomura, as well as alumni of Coinbase and Fireblocks. 

MoreMarkets team raised $13 million in venture funding from investors including Electric Capital. 

The product is fully decentralized, while the organization behind it operates internationally with a presence in the US, UK, Cayman Islands, and UAE. 

As a non-custodial DeFi platform, it does not fall under the same licensing requirements as custodial services, since it provides software and smart contract infrastructure rather than functioning as an exchange or bank. 

That said, we maintain clear terms of service and enforce regional restrictions where necessary to comply with applicable regulations.