TLDR
- Flare introduces FXRP, a wrapped XRP asset enabling non-custodial minting and decentralized finance participation.
- FXRP pools start with 5 million cap and offer rFLR rewards targeting up to 50% annual percentage rates.
- Security includes audits by Zellic and Coinspect plus Hypernative 24/7 monitoring and bug bounty programs.
- Flare plans future wrapped assets like Bitcoin and Dogecoin to expand multi-chain DeFi capabilities.
Flare Network has introduced FXRP, enabling XRP to function within decentralized finance (DeFi) ecosystems. The new overcollateralized asset allows XRP holders to mint FXRP and use it across multiple DeFi platforms for lending, trading, and liquidity provision. With the launch of FXRP v1.2, Flare’s FAssets system brings non-smart contract tokens like XRP into on-chain finance while maintaining a non-custodial and transparent framework.
FXRP Expands XRP Utility on Flare
FXRP serves as a wrapped version of XRP, supporting one-to-one representation and on-chain verification. Users mint FXRP by depositing collateral through Flare’s independent agents, then use it within DeFi protocols. Minted FXRP can be traded, lent, or added as liquidity on decentralized exchanges like SparkDEX, BlazeSwap, and Enosys.
Wallets such as Luminite and Oxen Flow support minting and bridging to simplify access. Flare has capped FXRP issuance at 5 million units during its first week, with plans to increase the limit gradually. To encourage early participation, liquidity pools will distribute rFLR, or Reward Flare tokens, with targeted annual percentage rates (APRs) reaching up to 50% for FXRP/USDT pairs.
Security and Audits Strengthen the FXRP Rollout
Furthermore, The FXRP system emphasizes robust security to maintain trust across its expanding network. Flare stated that its FAssets protocol has undergone multiple independent audits by firms including Zellic and Coinspect. It also uses 24/7 monitoring by Hypernative and supports bug bounty programs to identify and mitigate risks proactively.
Flare’s core data services, such as the Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC), verify prices and network states directly on-chain. This framework reduces reliance on external custodians and strengthens the decentralization of FXRP operations.
New Ecosystem Tools Drive Adoption
In addition, Flare is introducing new tools to support ongoing adoption. Minting FXRP requires a self-custody wallet compatible with both the Flare and XRPL networks. Users can also acquire FXRP through decentralized exchanges after bridging XRP to Flare. These steps, though technical, broaden participation by ensuring non-custodial, permissionless access.
To sustain growth, Flare’s emissions committee is directing rFLR rewards toward strategic liquidity pools. These include Kinetic FXRP supply pools and isolated pools paired with USDT. The incentive design aims to foster long-term activity rather than short-term speculation, helping to build a stable DeFi environment around XRP.
Broader Integrations and Future Assets Are Planned
Even so, Flare is already preparing for the next phase of expansion. Upcoming integrations, such as liquid staking with stXRP through the Firelight project, will allow FXRP to be used as collateral for loans and yield-generating vault strategies. This could extend XRP’s role within DeFi beyond simple trading and liquidity provision.
The network also intends to launch wrapped versions of Bitcoin and Dogecoin through its FAssets system, further extending its reach. As these additions roll out, FXRP stands to become a key component of a broader multi-chain DeFi infrastructure. Flare’s token, FLR, currently ranks 80th by market capitalization at about $1.9 billion and recently traded near $0.03, reflecting growing interest in its expanding ecosystem.
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