Flare Connects XRP's Enterprise Settlements to Decentralized Finance Using FXRP
- Flare launches FXRP, a wrapped XRP token enabling DeFi integration via its FAssets system, expanding XRP's utility beyond traditional use cases. - FXRP requires overcollateralization (1.3x) and employs multi-signature Core Vaults to secure cross-chain minting and mitigate volatility risks. - Liquidity providers earn rFLR rewards through DEX pools, with APRs up to 50%, while partnerships with Enosys and Luminite Wallets enhance accessibility. - Future upgrades include TEE-powered FAssets v2 and stXRP coll
Flare has introduced FXRP, a wrapped form of
Creating FXRP involves a multi-layered process designed for both security and flexibility. Users start by transferring XRP to a designated agent’s address on the XRP Ledger (XRPL) and pay a collateral reservation fee in FLR, Flare’s native currency. Agents then secure collateral—which may include XRP, FLR, stablecoins, or SGB (Songbird’s token)—on either the Songbird or Flare network to support the issued FXRP. The protocol enforces a minimum overcollateralization ratio of 1.3x to protect against price swings FAssets | Flare [ 1 ]. The Core Vault, introduced in FAssets v1.1, serves as a liquidity pool, letting agents deposit XRP to release FLR collateral, while time locks and multi-signature protections help minimize withdrawal risks FAssets | Flare [ 1 ].
Flare places a strong emphasis on security. The FAssets platform has been reviewed by Zellic and Coinspect, and is supported by ongoing bug bounty programs via Immunefi. Hypernative provides continuous, around-the-clock monitoring for immediate threat response FAssets | Flare [ 1 ]. The Core Vault’s architecture features escrowed assets and multi-signature authorization to restrict daily withdrawals, further boosting the system’s trustless nature FAssets | Flare [ 1 ]. These safeguards are intended to address the typical vulnerabilities found in cross-chain minting and asset bridging within DeFi Flare Launches FXRP to Unlock XRP's DeFi Potential [ 2 ].
To encourage participation, Flare is awarding rFLR incentives to liquidity providers on decentralized exchanges (DEXes) that support FXRP. Liquidity pools like FXRP/USDT on SparkDEX and BlazeSwap are offering annual yields as high as 50%, with future plans to introduce collateralized borrowing as adoption increases Flare Launches FXRP to Unlock XRP's DeFi Potential [ 2 ]. The integration of FXRP with DeFi platforms such as Enosys and Luminite Wallets makes trading and staking more accessible for XRP users Flare Launches FXRP to Unlock XRP's DeFi Potential [ 2 ].
Flare’s development roadmap outlines further upgrades to boost FXRP’s capabilities. The upcoming FAssets v2 will incorporate TEE-based wallet protocols, enhancing security and speeding up cross-chain operations through trusted execution environments (TEEs) FAssets | Flare [ 1 ]. Looking ahead, Flare also plans to partner with projects like Firelight to allow stXRP (staking derivatives of XRP) to be used as collateral, fostering a more diverse ecosystem for yield opportunities Flare Launches FXRP to Unlock XRP's DeFi Potential [ 2 ]. These initiatives are part of Flare’s broader goal to make XRP a core asset for DeFi, capitalizing on its strengths in rapid, low-cost transactions Flare Launches FXRP to Unlock XRP's DeFi Potential [ 2 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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