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    Wrapped XRP

    WXRP

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    04.010
    Risk Level:
    High
    Recommendation:Speculative position only
    Evaluated:May 13, 2025 (v2)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    Overall Analysis

    WXRP provides a straightforward, fully-collateralized bridge of XRP into Ethereum DeFi, but exhibits significant shortcomings in development, governance, and security transparency.

    Strengths

    • 1:1 peg backed by real XRP reserves; no inflationary emissions or vesting
    • ERC-20 compatibility opens lending, AMMs, staking, and yield opportunities

    Weaknesses

    • Minimal active development (3/10) and low contributor count (high bus factor)
    • Poor community engagement (4/10) with no dedicated channels or governance forums
    • Opaque team/governance (3/10); custodial bridge creates single points of failure
    • Lack of independent security audits and regular reserve attestations (5/10)

    Conclusion: While WXRP’s tokenomics and market fit are decent, its centralized custody, anonymous team, and low dev velocity pose high counterparty and operational risks. Exercise caution and treat as a speculative play.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    03.010

    Community Support

    Social media presence and community engagement

    RiskReturn
    04.010

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    07.010

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    07.010

    Team & Governance

    Team background and project governance

    RiskReturn
    03.010

    Security & Audits

    Security history and audit status

    RiskReturn
    05.010

    About Wrapped XRP (WXRP)

    Wrapped XRP (WXRP)

    Wrapped XRP (WXRP) is an ERC-20 token on the Ethereum blockchain fully backed 1:1 by XRP held in secure reserves. By tokenizing XRP as an Ethereum-compatible asset, WXRP enables seamless access to DeFi protocols, liquidity pools, decentralized exchanges, and cross-chain bridges.

    Key Features

    • 1:1 XRP Peg: Each WXRP token is collateralized with one XRP locked in audited reserves, maintaining price parity.
    • ERC-20 Standard: Fully compatible with Ethereum wallets, smart contracts, and DeFi applications.
    • DeFi Utility: Use WXRP for trading, liquidity mining, staking, and lending across leading protocols.
    • Cross-Chain Bridging: Move value between the XRP Ledger and Ethereum networks via trust-minimized bridge mechanisms.

    Token Details

    • Name: Wrapped XRP
    • Symbol: WXRP
    • Standard: ERC-20
    • Supply Model: Minted and burned on demand to mirror XRP reserves

    How It Works

    1. A user deposits XRP into a custodian or smart contract on the XRP Ledger.
    2. The bridge mints the equivalent amount of WXRP on Ethereum.
    3. To redeem, WXRP is burned and the original XRP is released back to the user.

    By leveraging WXRP, XRP holders gain full interoperability with Ethereum’s expanding DeFi ecosystem while preserving exposure to XRP’s native network features.

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