Well-known XRP commentator Digital Asset Investor (DAI) says he is staying out of the current 8–10% yield offerings, choosing security over returns.
In a tweet, he highlighted that while some XRP yield products are advertising 8–10% annual returns, he would rather “trade 3–5% of that yield” for an insurance policy protecting his XRP holdings against loss with a well-established insurance company.
The community pundit stressed that until such insurance is available, he is “sitting on the sidelines keeping my XRP safe for now.”
His caution comes from the lingering scars of past financial schemes that offered attractive returns but ended in disaster.
Choosing Safety Over High XRP Returns
Specifically, Digital Asset Investor cited Charles Ponzi’s infamous 1920 scheme, which promised a 50% return in just 45 days before collapsing in less than a year.
Decades later, Bernie Madoff lured investors with a seemingly steady 10–12% annual return, only for his operation to unravel in a $65 billion fraud.
During the late 1990s dot-com bubble, expectations of 20% or more evaporated when the market burst in 2000.
In 2006, subprime mortgage-backed collateralized debt obligations offered yields of 8–15% on supposedly AAA-rated assets, ultimately contributing to the 2008 financial meltdown.
More recently, crypto lending platforms like Celsius and Anchor promised 12–20% yields before their dramatic collapses wiped out billions. Even private lending schemes offering 15–20% have frequently turned out to be scams.
In other words, these episodes highlight how enticing yields can often mask underlying risks.
XRP Yield Opportunities Are Expanding
His warning comes as XRP yield products are gaining traction. For instance, Uphold exchange recently revealed it is closer to launching its own XRP yield feature.
Meanwhile, Flare Network’s FAssets protocol has brought XRP into decentralized finance (DeFi). Notably, it enables holders to mint FXRP, a one-to-one representation of XRP, allowing them to earn on-chain yield through trading, lending, and stablecoin minting.
Interestingly, market participants minted the first 5 million XRP cap in just a few hours, showing a strong appetite for DeFi-ready XRP.
Flare’s upcoming Firelight protocol aims to introduce stXRP, a liquid staking version of XRP targeting around 7% annual returns.
At the same time, Axelar unveiled mXRP at Ripple’s Seoul 2025 event, promising approximately 10% APY through liquid staking.
These innovations are transforming XRP from a payments-focused token into a DeFi asset capable of generating passive income.
While DeFi protocols like Flare and new staking options such as mXRP offer exciting opportunities, Digital Asset Investor’s stance highlights the importance of protecting principal while chasing yield.
Insurance options for crypto assets remain limited, and the memory of high-profile collapses, from Ponzi schemes to recent crypto lending failures, makes some investors wary.
Disclosed Security Practices Around New XRP Yields
Notably, Flare says it secures FAssets through four security audits, bug bounties via Immunefi, community audits through Code4rena, and 24/7 monitoring by Hypernative.
In mXRP’s case, Hyperithm manages the deposited XRP, while Midas creates the mXRP product. If there are any losses, Hyperithm and Axelar are responsible.
Meanwhile, Anodos Finance co-founder Panos Mekras believes that adding liquidity to the XRP/mXRP automated market maker pool carries “virtually zero risk” compared to other pools and assets. This is due to price differences and minimal impermanent loss.
However, he emphasized that nothing is entirely risk-free, including mXRP and FXRP, each of which carries its own types of risks.
Mekras reminded investors to “play responsibly,” cautioning against any claims that suggest absolute safety.
Reminder: Nothing is risk-free. If someone claims that, they are dangerous. Every asset, every piece of code, everything you do in your life involves some type of risk. That includes mXRP and FXRP, which both have different types of risks. Regardless of how low or high the risk…
— Panos 🔼{X}🇬🇷 (@panosmek) September 24, 2025
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
