Flare’s FXRP Transforms XRP into Programmable Assets for Decentralized Finance

Flare Network has introduced FXRP, a tokenized form of

aimed at bringing the asset into decentralized finance (DeFi) platforms. Using Flare’s FAssets protocol, FXRP allows XRP owners to utilize their tokens as collateral, liquidity, or to earn yields. Each FXRP is created at a 1:1 ratio with XRP and is backed by a system where agents must provide collateral worth over 30% more than the FXRP they mint. This structure is designed to maintain security even if prices fluctuate. The initial limit of 5 million FXRP in the first week demonstrates a careful approach, with plans to gradually increase this amount title1 [ 1 ].

To mint FXRP, users send their XRP to agents, who then lock up collateral in smart contract vaults on Flare. The adequacy of this collateral is checked through Flare’s Time Series Oracle (FTSO) before FXRP is issued. Unlike centralized wrapped tokens, this process depends on decentralized agents and oracle-based verification title2 [ 2 ]. FXRP can also be obtained on decentralized exchanges such as SparkDEX, BlazeSwap, and Enosys, or through wallets like Luminite and Oxen Flow, which support direct swaps title2 [ 2 ]. The system is built for composability, enabling FXRP to work smoothly with DeFi protocols for lending, staking, and providing liquidity title1 [ 1 ].

Bringing FXRP into DeFi increases the use cases for XRP beyond its original purpose in cross-border transactions. For example, Enosys Loans, a DeFi service on Flare, lets users lock FXRP as collateral to mint stablecoins while still maintaining exposure to XRP. This Collateralized Debt Position (CDP) approach is similar to methods used in Ethereum’s DeFi space, taking advantage of Flare’s EVM compatibility for easy integration title3 [ 3 ]. The use of FTSO for decentralized price feeds ensures that collateral is valued accurately, helping to manage risks from price swings title3 [ 3 ]. Future updates will include support for staked XRP (stXRP) and

bridged to Flare (FBTC), expanding the range of assets available to DeFi users title3 [ 3 ].

To encourage participation, Flare provides rFLR token rewards. Early adopters in FXRP and USD₮0 liquidity pools can earn annual percentage rates (APRs) as high as 50%, while Kinetic FXRP pools target a 5% APR title2 [ 2 ]. These rewards are part of a larger effort to boost on-chain activity and increase the total value locked (TVL) in Flare’s network. The platform also plans to add stXRP—liquid-staked XRP powered by Firelight—into yield farming, lending, and stablecoin systems title1 [ 1 ]. These initiatives establish FXRP as a key asset for cross-chain finance, allowing XRP to serve as programmable capital.

Security is a central focus, with Flare’s systems being audited by Zellic and Coinspect title1 [ 1 ]. The FTSO, which collects price data from independent sources, provides reliable pricing for collateral assets title3 [ 3 ]. Additionally, a bug bounty program on Immunefi helps strengthen the network’s security as it grows title1 [ 1 ]. Experts highlight that FXRP’s decentralized approach reduces dependence on centralized custodians, staying true to DeFi’s principle of minimizing trust. However, users should be aware of risks such as collateral liquidation and slippage in liquidity pools, making active management important title1 [ 1 ].

The introduction of FXRP is a major step for XRP’s involvement in DeFi, evolving it from a settlement token into a flexible asset for earning yields and providing liquidity. By enabling XRP to be used in lending, stablecoin creation, and cross-chain activities, Flare’s ecosystem broadens the token’s applications across decentralized platforms. As stXRP and multi-asset CDPs like Enosys Loans become more widely used, XRP’s role in DeFi is set to grow, potentially changing how non-smart contract tokens participate in decentralized finance title3 [ 3 ].