In a move to bring XRP into the world of decentralized finance (DeFi), the Layer-1 blockchain Flare Network has launched FXRP, a wrapped version of the token. This new product is the first to be built using Flare’s “FAssets” system, which allows non-smart contract tokens like XRP to become overcollateralized, DeFi-ready assets.
To get FXRP, XRP holders can mint a 1:1 representation of their XRP by depositing collateral with a network of independent agents on Flare. Once minted, FXRP can be traded, lent, or used as liquidity across DeFi protocols on the network. The initial launch has a 5 million FXRP minting cap for the first week, with plans to increase it over time.
A key feature of FXRP is that it is non-custodial and completely on-chain, a significant difference from older wrapped XRP products. Its security and accurate price feeds are powered by Flare’s Time Series Oracle (FTSO) and Flare Data Connector (FDC). To encourage adoption, liquidity providers for FXRP will be rewarded in rFLR (Reward Flare), with some pools offering APRs of up to 50%. While FXRP itself doesn’t generate a yield, users can earn returns by deploying it in lending and liquidity provision.
This launch is part of a larger trend to integrate XRP into the DeFi ecosystem. Following the launch of FXRP, Flare plans to introduce wrapped versions of Bitcoin and Dogecoin next.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
