CeDeFi Yields
Last updated
Last updated
Doppler Finance’s XRPfi framework ensures on-chain proof of reserve through trusted custody providers. It opens institutional yield opportunities to everyday XRP holders, bridging a new opportunity which was previously inaccessible to retail users. The protocol operates through four key steps.
User Deposit
When users deposit XRP into XRPfi, their tokens initially reside in a dedicated Doppler Finance address on XRPL.
Custody Transfer
At scheduled intervals, the pooled XRP moves to a custody wallet. This wallet, typically a cold-storage solution, offers transparent on-chain verification of balances and ensures that user assets remain safe.
Off-chain Settlement Process
Trusted custody providers (e.g., Ceffu, Fireblocks) make it possible for on-chain XRP to be accessed on selected centralized exchanges, opening the door to a yield-generation strategies. Once transferred, the assets are ready to be put to work in institutional-grade trading activities.
Yield Generation & Distribution
Experienced Quant Operators employ institutional-grade strategies, aiming to produce steady returns. Generated yield then flows back through the custody wallet and ultimately back to depositors.
Unlike typical “black box” CeDeFi structures, XRPfi provides both transparent and a secure ways to make yield, made possible by two key elements:
1. On-Chain Proof of Reserve
By partnering with top-tier custody providers, Doppler Finance ensures continuous and verifiable proof that user-deposited XRP is securely stored. Additionally, through these partners, Doppler Finance will provide transparent updates on where the XRP is deployed. Anyone can check on-chain proof-of-reserve to confirm that funds remain properly collateralized.
On- chain addresses
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Deposit Wallet(Fireblocks)
A wallet which filters out abnormal deposits
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Treasury Wallet(Fireblocks)
A wallet which receives and stores properly deposited funds from the deposit wallet.
The funds accumulated in this wallet are transferred to ceffu once a week.
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Withdrawal wallet(Fireblocks)
A wallet which handles user withdrawal.
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Treasury Wallet(Ceffu)
Under Ceffu custody, the assets in this wallet can be delegated to Binance. Once the delegation is complete, the balance is no longer recorded on-chain for this wallet.
2. Secure, Tested Yield Strategies
Institution-level yield strategies from quant operator partners were selected with a focus on capital preservation and consistent performance. The most critical consideration in strategy selection was ensuring that Doppler Finance deploys strategies with minimal risk of losing the number of XRP, regardless of market conditions. Two primary examples include:
XRP-Neutral Arbitrage
XRP on Doppler Finance is deployed across multiple exchanges to capitalize on yield opportunities from discrepancies in XRP’s spot or perpetual markets, but unlike traditional arbitrage focused on increasing dollar amounts, this approach is designed to accumulate more XRP. For example, if XRP is priced at $3 on Exchange A and $4 on Exchange B, the Operator might allocate $12 on each exchange. By buying 4 XRP at Exchange A (12/3) and selling only 3 XRP at Exchange B (12/4), they net 1 extra XRP overall. Because this strategy targets short-lived price inefficiencies rather than broad market trends, it remains inherently more stable—even in volatile conditions.
Spot–Perpetual Arbitrage
This strategy relies on perpetual market funding rates to generate yield. Operators maintain a delta-neutral position by opening offsetting trades in the spot and perpetual markets. Deposited XRP serves as collateral to borrow stablecoins for these delta-neutral position, with a conservative LTV ratio and active monitoring to minimize risk. When funding rates are positive, operators buy XRP on the spot market and short an equivalent amount in perpetual; if rates turn negative, they reverse the position by selling spot and going long in perpetual. By focusing on funding rate differentials rather than price movements, this approach aims to deliver consistent yields while keeping market exposure low.
Doppler Finance will continue to expand CeDeFi yield strategies in collaboration with quant operator partners. Beyond arbitrage, the platform aims to explore a wide range of yield sources, including options and other sophisticated financial instruments.
Doppler Finance has built its CeDeFi system in a more efficient and secure way by leveraging industry-leading infrastructure and custody solutions. The teams that have partnered with Doppler Finance are as follows:
Fireblocks
Ceffu (MirrorX)
Ceffu offers secure institutional custody, asset management, and off-exchange settlement solutions. Doppler Finance selected MirrorX by Ceffu for its comprehensive suite of institutional-grade features, including:
Deep Liquidity Access: MirrorX taps into deep liquidity pools, allowing quantitative operators to execute trades efficiently at scale.
Flexible Fund Management: Real-time fund reallocation between designated asset managers enables dynamic deployment into yield-generating strategies.
Fireblocks is one of the world’s most trusted and proven digital asset infrastructure companies, empowering organizations of all sizes to build, run, and grow their business on the blockchain. By integrating Fireblocks' custody and services, Doppler Finance creates a secure environment for XRP holders to participate in XRPfi.
Secure Settlement and Custody: MirrorX connects institutional clients to the world’s largest centralized exchange while assets remain under Ceffu's custody. This enables and eliminates counterparty risk for XRPfi participants.
