Plain-language definitions for everything you'll run into using Xora and the XRP Ledger. Custody models, destination tags, treasury controls, APY mechanics, and the rest — written so a non-technical reader can understand them.
The native cryptocurrency of the XRP Ledger. Used to pay transaction fees on the network, hold value, and bridge between currencies. Issued at genesis (no mining), with a fixed total supply of 100 billion. Settles in 3–5 seconds with sub-cent fees.
The XRP Ledger — an open-source, permissionless blockchain launched in 2012. Native asset is XRP. Uses a consensus protocol instead of proof-of-work or proof-of-stake, which makes it carbon-neutral, fast (3–5 second settlement), and cheap (sub-cent fees per transaction).
A consumer-facing financial product built on the XRP Ledger that bundles deposit, yield, and spending features into one app. Xora is an example. Distinct from a traditional crypto exchange or a generic DeFi protocol — neobanks abstract custody and yield strategy behind a banking interface, with a debit card for everyday spending.
A 32-bit number that distinguishes recipients sharing a single XRPL address. Required by exchanges (Binance, Coinbase, Kraken, Uphold) and by pooled custody platforms like Xora to credit a deposit to the correct user. XRP sent without a destination tag to a shared address cannot be credited or automatically recovered — always include the tag.
A wallet configuration requiring multiple signatures to authorize a transaction. For Xora, 3-of-5 XRPL multisig is on the custody roadmap and should not be treated as live until the signer list is published on-chain. Current public custody uses a segregated XRPL treasury with monitoring and circuit breakers.
A model where the service holds the private keys for user funds. Xora is custodial — users sign in to an account rather than managing seed phrases. Trade-off: simpler UX and recoverable accounts, but users rely on Xora's custody operations rather than holding their own keys.
The opposite of custodial — users hold their own private keys. Xumm, GemWallet, and Crossmark are non-custodial XRPL wallets. Maximum sovereignty, but zero recovery if keys or seed phrases are lost.
Annual percentage yield — the rate of return on a deposit over one year, including compounding effects. Xora quotes 22% APY on Tier 1 (0–1,000 XRP) deposits, split into 15% native XRP yield and 7% XORA token rewards. APY is a target rate, not a guarantee — see yield source breakdown for the mechanism.
A server that participates in the XRPL consensus protocol by voting on which transactions to include in each ledger. Xora operates its own validator node. Validators are not paid in XRP for participating — the role is reputational and infrastructural, signaling commitment to the network.
Total value locked — the sum of all assets currently held in a protocol. For Xora, TVL is the sum of all user ledger balances (XRP owed to depositors). Reported live at xora.finance/stats and queryable via the public API.
The on-chain wallet that holds pooled user deposits. For Xora, this is a segregated XRPL treasury address with per-user destination tags. The treasury balance is public and queryable on any XRPL explorer — xrpscan.com, bithomp.com, livenet.xrpl.org — and is reported alongside TVL on the stats page.
A dedicated capital buffer reserved for depositor protection. Xora routes 5% of protocol revenue to a segregated XRPL wallet that absorbs shortfalls from lending counterparty defaults before any depositor balance is touched. Not FDIC-style insurance — it is a sized buffer with a public address, not a government guarantee.
A period during which deposited funds cannot be withdrawn. Xora has no lock-up — withdrawals settle on the XRPL in 3–5 seconds and yield accrues right up to the moment of withdrawal. Many CeFi yield products (Nexo Locked, Celsius Earn) imposed lock-ups; Xora deliberately does not.
Reinvesting earned yield so that future yield is calculated on the new larger principal. Xora compounds daily — each day's credit becomes part of the next day's earning base. For 22% APY this works out to roughly 0.0544% added per day. Try the calculator for projections.
An APY that varies by deposit size. Xora's native XRP yield is 15% on 0–1,000 XRP, 12% on 1,000–10,000, 10% on 10,000–100,000, 8% above 100,000. The 7% XORA token rewards portion is constant across all tiers.
A service for converting fiat currency (USD, EUR) into cryptocurrency. Xora supports ACH on-ramp via Plaid and Dwolla — link a US bank account and convert directly to XRP for deposit. Alternative: send XRP from any centralized exchange (Binance, Coinbase, Uphold, Bitstamp) with a destination tag.
The reverse of on-ramp — converting cryptocurrency back to fiat. Xora withdrawals go to any XRPL address; conversion back to fiat is handled by the receiving exchange or, once live, by the Xora Card (auto XRP-to-fiat conversion at point of sale, 0% FX fees).