XRP has long been absent from decentralized finance (DeFi) due to the limitations of the XRP Ledger (XRPL). The new XRPFi ecosystem, powered by Flare Network, aims to bridge this gap by utilizing smart contracts and bridging technology. Flare provides a crucial link between non-smart-contract assets like XRP and the DeFi sector, introducing FAssets which includes FXRP, a wrapped version of XRP. This allows XRP holders to use their assets in various DeFi protocols.
With FXRP, users can stake their tokens to receive stXRP, a liquid staking token that maintains liquidity while generating yields. Max Luck, head of growth at Flare, commented, “This setup allows XRP holders to unlock native-like staking yields on an asset that otherwise doesn’t support staking, enabling passive income without sacrificing liquidity.”
Institutions are showing interest with platforms like Uphold, which manages over 1.8 billion XRP, and Nasdaq-listed VivoPower committing to a $100 million XRP deployment. As XRP's market cap exceeds $130 billion, any diversion of liquidity into DeFi could significantly enhance the capital available in the ecosystem.
Liquid staking will soon launch with the stXRP token through the Firelight protocol. By depositing FXRP, holders will receive stXRP at a 1:1 ratio, allowing them to participate in DeFi activities such as trading and investing. Additionally, they may earn Firelight Points, which could lead to future rewards. This advancement potentially increases interaction and usability within the XRPFi ecosystem, positioning stXRP as a valuable asset across DeFi applications.
With FXRP, users can stake their tokens to receive stXRP, a liquid staking token that maintains liquidity while generating yields. Max Luck, head of growth at Flare, commented, “This setup allows XRP holders to unlock native-like staking yields on an asset that otherwise doesn’t support staking, enabling passive income without sacrificing liquidity.”
Institutions are showing interest with platforms like Uphold, which manages over 1.8 billion XRP, and Nasdaq-listed VivoPower committing to a $100 million XRP deployment. As XRP's market cap exceeds $130 billion, any diversion of liquidity into DeFi could significantly enhance the capital available in the ecosystem.
Liquid staking will soon launch with the stXRP token through the Firelight protocol. By depositing FXRP, holders will receive stXRP at a 1:1 ratio, allowing them to participate in DeFi activities such as trading and investing. Additionally, they may earn Firelight Points, which could lead to future rewards. This advancement potentially increases interaction and usability within the XRPFi ecosystem, positioning stXRP as a valuable asset across DeFi applications.
