Kinetic FXRP Market Posts 0.04% Base Rate
November data shows yields rely more on incentives than actual demand for the XRP-linked asset.
The Kinetic lending market on the Flare network recorded a volume of 24 million dollars in FXRP on November 1. The annualized base rate for liquidity providers was just 0.04% before the application of additional rewards.
Data reveals a significant disparity in asset utilization within the protocol. While FXRP recorded a utilization rate of 6.7%, the USDT0 stablecoin market reached 92.8% during the same observation period.
The total compensation displayed to users combines the base rate with token reward components. The 0.59% annualized yield observed on the platform includes a 0.55% portion derived from incentives. This demonstrates that the majority of the gain does not come from interest payments made by borrowers.
Technical analysis of the figures suggests that demand for loans of the XRP-linked asset remains modest. The separation between the return generated by borrowers and the amount distributed via incentives is essential to understand the economic viability of the protocol.
Spotted an error? Write to suporte@criptoico.com.br.
