LP tokens as collateral
An LP token represents a share of an XRPL AMM pool. Securd accepts XRPL AMM LP tokens as collateral: you supply the LP token, enable it as collateral, and borrow other assets against it.
LP markets are collateral-only: an LP token cannot be borrowed and is not listed in Borrow Markets, and LP markets pay no supply APY. The value of an LP token still includes the trading fees accrued by the pool. Each LP token is priced from its pool and published on-chain by Securd. See LP Prices.
LP markets
| Market | LP token issuer (AMM account) | Pool assets | Status |
|---|---|---|---|
XRP/USDC LP (sXRPUSDCLP) | rM7cHVPfhe9yxQNk2kDNBEQqoQmMcQGPWE | XRP, USDC | Open since 2026-10-07 |
XRP/ARMY LP (sXRPARMYLP) | rnsRq5ahgbFeRiAgBVvFTafyAgiS9x9Ztn | XRP, ARMY | Not available: no approved price source for ARMY. Supplying and borrowing are paused |
New LP markets appear in the app as they are listed by the protocol. The examples below use the XRP/USDC LP token.
Opening phase
The XRP/USDC LP market opened with conservative parameters: a 35 % collateral factor, a 25 % haircut on the price, and a $1,000 maximum per action. The pool is small, and the publication floor for its price is $25,000 of pool value during this phase, against a policy floor of $50,000. Parameters are reviewed as the pool grows; the current values are displayed in the app.
Obtaining LP tokens
Deposit the two assets of a pool from your wallet or an XRPL DEX interface (AMMDeposit). The pool issues its LP token to your account. The app displays the balance in the Wallet column of Supply Markets.
Trust line limit
A trust line created by an AMM deposit has a limit of 0. Supplying works, but a withdrawal cannot be delivered to such a trust line. The app checks the limit at withdrawal time and offers to raise it in one transaction. A trust line opened manually with TrustSet keeps the limit you set. See Trust lines.
Using LP tokens
Each step is a standard action of the protocol.
- Supply. Hover XRP/USDC LP in Supply Markets and click Supply. Two wallet prompts: the token transfer, then the relay fee. See Supply.
- Enable collateral. Hover the row and click Collateral. The borrow limit increases by the LP oracle value times the market's collateral factor. See Collateral.
- Borrow. Borrow XRP or USDC.axl from Borrow Markets. See Borrow.
- Repay. See Repay.
- Disable collateral. Hover the LP row and click Exit. Blocked while a debt depends on this collateral.
- Withdraw. Hover the LP row and click Withdraw. Raise the trust line limit if prompted. See Withdraw.
A supplied LP token with collateral disabled is not exposed to liquidation and can be withdrawn at any time, subject to the bridge operating.
Limits
Values as of 2026-10-11. Current values are displayed in the app.
| Limit | Value |
|---|---|
| Minimum per action | 0.000001 LP |
| Maximum per action | $1,000 of LP at the oracle price |
| Amount precision | 16 significant digits. 10 and 0.001 are accepted; 10.000000000000001 is rejected |
| Collateral factor | 35 %. Displayed on the market details page, Risk tab |
| Haircut | 25 %. Displayed on the LP Prices page as gap vs DEX |
| Supply cap | $95,600 of LP, monitored off-chain |
The USD maximum is not applied to a withdrawal while the oracle price reads 0, so a supplied balance is never locked by the cap.
Price status
The LP price is published at least every two minutes and is considered stale 15 minutes after the last publication.
| Status | Display | Effect |
|---|---|---|
| Live | ✓ Updated … ago on the LP Prices page | All actions available |
| Stale | ⚠ Stale price; the account summary displays Price not available yet | Supply and repay remain available. Borrowing, withdrawing and liquidation are paused for the account until the price is fresh |
| Not published | Oracle price not published yet | Same as stale |
See Health factor and liquidations.
Availability
- Supply and enable collateral are unavailable while the market's collateral factor is 0. The button displays Not available yet: this LP market opens once its collateral factor is set.
- Withdraw, disable collateral and repay are never restricted by market status.
Risks specific to LP collateral
| Risk | Description |
|---|---|
| Impermanent loss | The value of an LP token follows the geometric mean of the two assets. For the XRP/USDC pool, a 20 % drop of XRP lowers the LP value by about 10 % |
| Pool manipulation | The oracle price uses the pool's fair value, which cannot be raised by skewing the reserves. A sharp movement of the pool stops publication instead; the price then goes stale |
| Small pool | Publication stops when the pool value falls below the publication floor. The price goes stale, and LP collateral stops counting for new borrows until the pool recovers |
| Issuer freeze | The issuer of a pooled asset may be able to freeze its token. A freeze blocks transfers of the LP token and withdrawals from the pool until it is lifted |
| Liquidation at the oracle price | A liquidator seizes LP collateral at its oracle price, haircut included: the LP tokens seized are worth more at the DEX value than the debt repaid plus the incentive |
| Price publisher | The LP price is published by a single publisher operated by Securd, with the guards described on the LP Prices page |