XRP DeFi Gets Boost with Flare’s Non-Custodial FXRP Launch

TLDR

• Flare Network has launched FXRP, a wrapped version of XRP for decentralized finance applications.
• FXRP is the first live deployment of Flare’s FAssets system, making XRP usable in DeFi protocols.
• Users can mint FXRP by depositing XRP as collateral through Flare’s network of independent agents.
• FXRP is non-custodial and over-collateralized, with protocol-level verification ensuring decentralization and security.
• Liquidity providers in FXRP pools will earn rewards in Flare’s native rFLR token, with APRs up to 50%.

Flare Network has launched FXRP, a wrapped version of XRP, to bring the cryptocurrency into decentralized finance (DeFi) applications. FXRP is the first live deployment of Flare’s FAssets system, which allows non-smart contract tokens like XRP to interact with DeFi protocols. The launch aims to make XRP more usable and accessible within the growing DeFi ecosystem.

FXRP Enables XRP Holders to Mint DeFi Asset

FXRP offers XRP holders the ability to mint a one-to-one representation of XRP for use within the Flare network. Users can mint FXRP by depositing XRP as collateral via Flare’s network of independent agents. This system ensures FXRP is over-collateralized, enabling it to be traded, lent, or used as liquidity across DeFi platforms.

According to Filip Koprivec, Flare’s Chief Product Officer,

This approach, combined with Flare’s enshrined data protocols like the Flare Time Series Oracle (FTSO), ensures decentralized and auditable verification of the system. These protocols help maintain the real-time price and state of FXRP, ensuring its functionality in the DeFi space.

Flare Boosts XRP DeFi Journey

To boost liquidity, Flare will reward liquidity providers in FXRP pools with rFLR, its native reward token. Pools like FXRP/USDT on platforms such as SparkDEX, BlazeSwap, and Enosys will offer annual percentage rates (APRs) of up to 50%. These rewards are part of Flare’s strategy to attract liquidity and build a strong DeFi ecosystem around FXRP.

FXRP users can mint, swap, and bridge the asset through wallets such as Luminite and Oxen Flow. By providing these options, Flare ensures that users have multiple ways to access and use FXRP within the DeFi ecosystem. As the launch continues, Flare plans to gradually increase the FXRP supply, starting with a cap of 5 million tokens in the first week.

The introduction of FXRP is considered a significant step in XRP’s journey into the DeFi sector. Previous attempts at creating wrapped versions of XRP were custodial and lacked traction. Flare’s approach, which is decentralized and non-custodial, offers a more secure and trustworthy option for XRP holders.

Flare also plans to expand its FAssets system by introducing wrapped versions of other major cryptocurrencies, including Bitcoin and Dogecoin. This move is expected to further enhance the DeFi ecosystem by offering more tokenized assets for use in decentralized finance.

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