Xora is a custodial XRP neobank. The headline 22% APY is two yield streams stacked: 15% in native XRP, 7% in XORA tokens. Here is the exact mechanism behind each.
Tier 1 applies to balances 0–1,000 XRP. Above that, native rates decay (19%, 17%, 15%) on a published curve. The 7% token component is constant across tiers.
Xora operates its own validator node on the XRP Ledger. Validator participation generates a small but constant base layer of yield denominated in XRP. This stream has no counterparty risk.
A portion of treasury XRP is allocated to vetted institutional desks under overcollateralized terms — sub-50% loan-to-value, daily margin calls, no rehypothecation. This is the largest contributor to the 15% stream and the source most exposed to counterparty risk.
Short-duration covered call and cash-secured put strategies on XRP volatility. Rolled monthly. Exposure is capped by treasury policy and never exceeds 20% of yield-bearing balances.
XORA is the protocol's native token. A fixed daily emission is distributed pro-rata to all yield-bearing depositors and reflected as a 7% APY at the current XORA market price. Token rewards are denominated in XORA, not USD — the dollar value of those rewards moves with the XORA token price.
The emission schedule decays as the deposit base grows, holding the per-depositor APY contribution near 7% by design.
If a lending counterparty defaults beyond collateral coverage, the reserve absorbs the shortfall before any depositor balance is impaired. Custody itself is segregated on the XRPL and is not rehypothecated.
The 15% native portion targets sustainability through diversified XRPL revenue: validator economics, lending at conservative LTV, and structured exposure. The 7% token portion follows a published emission curve that decays as deposits grow.
Xora lends only to vetted institutional desks at sub-50% LTV with daily margin calls. A default exceeding collateral is absorbed by the 5% insurance reserve before touching depositor balances.
No. Token rewards are denominated in XORA tokens. The 7% figure is computed at current market price and moves with it. The 15% native portion is denominated in XRP and is not exposed to XORA token price.
Yes. No lock-up, no cooldown. Withdrawals settle on the XRPL in under 5 seconds. Yield accrues right up to the moment a withdrawal is initiated.