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Magnetic X’s XRPL farming achieves liquidity of 1.9 million XRP, as 703 farmers earn over 50,000 XRP in 37 days and MAG token price soars to 2240 XRP.
Magnetic X, a protocol specializing in interfaces for applications on the XRP Ledger (XRPL), has made significant strides in the automated market maker (AMMs) and farming scene.
According to recent reports, their efforts over a 37-day period have yielded impressive results, with 703 unique farmers collectively earning over 50,000 XRP.
🟢Results of 37 days of farming
✔️ 703 unique farmers
✔️ Farmers earned 50k+ XRP in 37 days
✔️ MAG has 1.9M XRP liquidity
✔️ MAG price is 2240 XRPFarming: https://t.co/1wNvRwYZHM pic.twitter.com/Zb2HjybdOh
— Magnetic X (@MagneticXRPL) June 5, 2024
The protocol’s total liquidity now stands at 1.9 million XRP, supporting their MAG token. Magnetic X also noted that the current price of MAG is 2,240 XRP. The Magnetic X team launched XRPL farming on April 30.
Emergence and Challenges of AMM in XRPL
Farming on the XRPL is a relatively new concept, made possible by the recent introduction of AMM functionality. According to their blog, AMM pools have however faced challenges in the near past due to low income from fees, with daily fees amounting to around 1,000 XRP despite having over 4 million XRP locked in these pools as of late April 2024.
The unprofitability of AMM pools has led to a decline in new liquidity. However, farming is positioned to reverse this trend by offering higher income opportunities, which in turn, could attract more users and revitalize interest in AMMs.
Notable Farming Pools
Prominent figures in the crypto community have highlighted the success of various farming pools. Brett Hill, a Bitrue ambassador, reported a surge in XRPL farming, with 717,000 XRP amassed in under a month. The MAG/XRP farming pool, in particular, has gained attention for its high returns.
🚨 Farming and AMM are undoubtedly some of the most powerful tools on the #XRP-Ledger!
May I ask how many LP tokens you currently possess?
■ The current @MagneticXRPL liquidity is an astounding 555kXRP!
• Additionally, Magnetic has experienced a 5% increase in the last 24… pic.twitter.com/tnPBb0EF35
— Brett Hill (@Brett_Crypto_X) May 26, 2024
Additionally, other pools such as the one with a TVL of 68,000 XRP offer an APR of 63.56%, attracting 201 farmers. Meanwhile, the 666/XRP pool stands out with a TVL of 108,000 XRP and an impressive APR of 180.45%, drawing 205 farmers. These pools continue to attract significant engagement due to their lucrative returns.
Growth in TVL and Locked XRP
A recent update by The Crypto Basic indicate a notable increase in the total value locked (TVL) in XRPL AMM pools, surpassing 10 million XRP as of June 3. This includes 5.19 million pure XRP locked in these pools. Vet, a renowned XRPL dUNL validator, highlighted this substantial growth, which reflects a significant rise from April’s figures.
Further, according to DeXfi, the total assets in XRPL AMM pools now equate to $5.3 million, marking a considerable increase from 7.4 million XRP in TVL recorded six weeks ago.