Moonwell

cbXRP: Short Summary

We are pleased to present a proposal for adding Coinbase Wrapped XRP (cbXRP) to Moonwell’s Base Core Markets. cbXRP is a fully‑collateralised, ERC‑20 representation of XRP that is minted and redeemed 1‑for‑1 through Coinbase. The listing would bring a blue‑chip, payments‑oriented asset to the protocol, deepen liquidity on Moonwell, and attract new retail and institutional users familiar with XRP.

cbXRP is new, and as a result has a few liquidity concerns, but it shows substantial benefits to the Moonwell community.

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Benefits to the Moonwell Community

1. Enhanced Liquidity & Volume
   Issuance by Coinbase immediately bootstraps liquidity on Aerodrome and Uniswap v4.
2. Stable Collateral Type
   Tight 1‑for‑1 peg to XRP backed by a regulated custodian.
3. New User Acquisition
   XRP has one of the largest retail followings (3 M+ on X), offering growth potential for Moonwell.
4. Diversification
   Adds a non‑USD‑pegged, large‑cap asset that is uncorrelated with ETH/Layer‑2 governance tokens.

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Resources and Socials

• Website: https://xrpl.org/
• Twitter: https://x.com/Ripple
• Coinbase Assets Announcement: https://x.com/CoinbaseAssets/status/1930360878886535373

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Market Risk Assessment

Market Metrics (Source)

• Market Cap: $5 M
• Minimum/Maximum Market Cap (Last 6 months): $0 (December 5 2024) / $5 M (June 5 2025)
• Circulating Supply: 2.3 M cbXRP
• Maximum Supply: 2.3 M cbXRP
• 24‑Hour Trading Volume: $341000 (first day of trading on Aerodrome)

Liquidity on Centralized Exchanges

Not applicable — cbXRP is an on‑chain deployment of XRP.

Holder Concentration

• Herfindahl Index: 0.88 (on Base) – indicates significant concentration among wallets for cbXRP.

Note: Ripple and Coinbase are reputable companies, and cbXRP borrows from Coinbase’s reserve supply, so this may not fully reflect governance risk.

Source: https://coinmarketcap.com/currencies/coinbase-wrapped-xrp/

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Decentralization

• Top 10 Holders: Majority in a Coinbase wallet followed by an Aerodrome LP.
• Token Contract: 0xcb585250f852c6c6bf90434ab21a00f02833a4af
• cbXRP operates as an on‑chain Ethereum‑native deployment of XRP, backed by Coinbase reserves.
• All administrative roles and access are through Coinbase or Ripple.

Governance Structure

• Coinbase‑wrapped assets are held in custody by Coinbase and are subject to Coinbase Custody rules (jurisdiction‑dependent).

Blacklist Functionality

• The cbXRP contract includes blacklist and unBlacklist functions and a public getter to check blacklist status.

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Smart Contract Risks

Codebase and On‑Chain Activity

• Smart contract: https://basescan.org/token/0xcb585250f852c6c6bf90434ab21a00f02833a4af#code
• Holders: 264 (as of the first day).

Security Posture

• Deployed under the same wrapped‑asset framework audited by OpenZeppelin. Audit details: https://blog.openzeppelin.com/coinbase-liquid-staking-token-audit

Upgradeability

• Upgradeable under an Admin role (likely a Coinbase multisig).

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Oracle Assessment

• Chainlink price feed: 0x9f0C1dD78C4CBdF5b9cf923a549A201EdC676D34
• cbXRP price tracks native XRP through Coinbase reserves. Supply on Base is capped by Coinbase Custody.
  • Coinbase Proof‑of‑Reserves page: https://www.coinbase.com/cbxrp/proof-of-reserves

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Swap Size Requirement

cbXRP currently does not meet the MALF swap‑size requirements; however, it has only been live for a few days.

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Liquidity Threshold

Currently, the liquidity does not meet the $2M threshold Moonwell has under MALF; however, seeing as though liquidity on Aerodrome has already hit 8% of that goal in a day, it is not far fetched to see it hitting this threshold sooner rather than later.

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Commercial Viability

Even if cbXRP never rises above cbETH’s historical utilisation peak (~33%), a $2 M liquidity seed, with one‑third borrowed at ~10% APY, would generate roughly $90000 annual interest. After Moonwell’s 10-15% reserve cut, protocol revenue would be just over $1100 per month—above the MALF threshold, with headroom for growth.

Gauntlet’s Risk Analysis and Recommendations

Initial Risk Parameters

Parameter	Value
Collateral Factor (CF)	70%
Supply Cap	1,000,000 cbXRP
Borrow Cap	500,000 cbXRP
Protocol Seize Share	30%

Interest Rate Model

Parameter	Value
Base Rate	0%
Multiplier	23%
Jump Multiplier	5×
Kink	45%
Reserve Factor	30%

Supporting Data

• Liquidity: Total DEX TVL for cbXRP pairs on Aerodrome (cbXRP/WETH and cbXRP/cbBTC) is roughly $900 k, and liquidity doubled within 12 hours on June 5, 2025.
• Circulating Supply: About 2.3 M cbXRP are in circulation on Base, with Coinbase custody wallets holding ~91 %.
• Slippage: A simulated sale of 500 k cbXRP would incur 40 – 50 % price slippage under current conditions; setting conservative supply/borrow caps mitigates this risk while liquidity deepens.
• Price Volatility: Over the last 180 days, XRP’s annualized daily log returns have spanned from a high of +25% to a low of -13%, underscoring the asset’s sensitivity to both upward trends and downward corrections. The current 30-day annualized log volatility is 60%, which is generally closer to other volatile blue chip assets. XRP’s price is primarily influenced by regulatory developments, most notably the SEC lawsuit, which shape investor confidence and institutional adoption. Broader market sentiment, macroeconomic conditions, and Ripple’s partnerships with financial institutions also play key roles in driving demand. Liquidity, exchange listings, and on-chain activity (like escrow releases) affect short-term volatility. Overall, XRP tends to be less volatile than many other crypto assets due to its established utility and relatively deep liquidity.

Proposal Author Information

• Names: Coolhorsegirl & 0xMims
• Twitter: https://x.com/Coolhorsegirl, https://x.com/0xMims
• Relationship with Token: 0xMims is a Moonwell governance lead; Coolhorsegirl is a delegate with the Tally team.

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Conclusion

Listing cbXRP as a core asset on Moonwell unlocks significant potential for protocol growth, liquidity expansion, and user adoption. While some risks remain—particularly liquidity depth and holder concentration—cbXRP’s stable, compliance‑ready design aligns with Moonwell’s mission of simple, secure, and accessible DeFi. We invite the community to engage in discussion and help shape this proposal to best serve Moonwell’s long‑term vision.

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