#Cardano founder Charles Hoskinson has proposed an initiative that would enable XRP holders to earn significantly better yields.

Hoskinson made the announcement during a recent live broadcast. In a tweet, the popular Cardano media outlet Angry Crypto Show highlighted a segment of the broadcast in which Hoskinson suggested positioning Midnight as XRP’s DeFi layer.

Notably, Hoskinson’s initiative envisions Midnight, Cardano’s upcoming sidechain, as the decentralized finance (DeFi) hub of the XRP ecosystem.

Now, the Cardano founder aims for Midnight to serve as the DeFi layer of the XRP ecosystem, allowing XRP holders to earn rewards. This initiative would enable XRP holders to bridge their tokens to Midnight and deposit them into Cardano-based DeFi protocols to “get much better yields.”

With Midnight serving as XRP’s DeFi layer, holders can participate in yield farming, liquidity provision, and other DeFi activities. Hoskinson’s DeFi plans for XRP come weeks after Uphold, a crypto exchange, revealed a similar initiative for the third-largest non-stablecoin token.

As previously reported, Uphold announced a partnership with Flare Network to help its users earn yields on their XRP holdings. The exchange is currently working behind the scenes to expose XRP holders to decentralized finance, where they can earn rewards through staking and yield farming.

Meanwhile, Hoskinson’s DeFi plan for XRP is just one piece of a broader roadmap envisioned for the token’s ecosystem. In April, Hoskinson confirmed that XRP would be integrated into Lace, Cardano’s non-custodial blockchain wallet.

Additionally, discussions are ongoing regarding the potential integration of Ripple USD (RLUSD) stablecoin on the Cardano blockchain. Moreover, XRP holders would also participate in the upcoming Glacier Drop, slated for later this year. In a recent engagement on X, the Cardano founder referred to these initiatives as a ‘whole package’ for XRP.’

#Crypto