Flare’s Overcollateralized FXRP: The Reason XRP’s Entry into DeFi Boasts Double the Security

Flare Network has introduced FXRP, a decentralized, overcollateralized tokenized version of

, allowing this asset to be utilized within decentralized finance (DeFi) platforms. This event marks the initial live rollout of Flare’s FAssets framework, which transforms tokens like XRP that lack smart contract capabilities into overcollateralized assets suitable for DeFi integration. FXRP mirrors XRP at a 1:1 ratio and is secured by a network of independent agents and Flare’s proprietary data infrastructure, such as the Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC). With this launch, XRP can now serve as collateral, provide liquidity, and generate yield in DeFi environments XRP Lands on Flare: Will DeFi Save XRP Price in October? [ 7 ].

The FAssets platform relies on a multi-signature managed liquidity reserve called the Core Vault, enabling agents to deposit XRP and receive collateral in FLR (or SGB on Songbird). To create FXRP, users send XRP to an agent’s wallet and supply collateral, which is validated through Flare’s data systems. The protocol enforces a 2x overcollateralization standard to safeguard against market fluctuations. The FAssets v1.1 upgrade also supports unlimited FXRP minting, boosting both scalability and capital efficiency Flare Network launches FXRP to let XRP be used in DeFi apps [ 6 ].

During the first week, FXRP minting is limited to 5 million tokens, with plans for gradual increases. Users can obtain FXRP via decentralized exchanges (DEXes) such as SparkDEX, BlazeSwap, and Enosys, or through wallets like Luminite and Oxen Flow. To encourage liquidity, Flare is offering rFLR rewards, with liquidity pools aiming for annual percentage rates (APRs) as high as 50%. The introduction of collateralized lending options is also set to broaden FXRP’s use cases XRP Lands on Flare: Will DeFi Save XRP Price in October? [ 7 ].

Flare places a strong emphasis on security, with FAssets undergoing audits by Zellic and Coinspect. The platform is further protected by bug bounty initiatives and continuous monitoring from Hypernative. By prioritizing protocol-level verification over custodial solutions, Flare reduces reliance on trust XRP Lands on Flare: Will DeFi Save XRP Price in October? [ 7 ]. Looking ahead, integrations such as stXRP from the Firelight project will allow FXRP to be used as collateral for loans and yield strategies within specialized vaults Flare launches FXRP, enabling XRP as collateral, liquidity, and yield … [ 9 ].

Market observers suggest that the FXRP rollout could impact the price direction of XRP. Technical analysis currently shows that XRP has bounced from important support zones, with momentum indicators pointing to renewed buying activity. A daily close above $2.95 may reinforce a bullish outlook, with resistance expected between $3.20 and $3.30 Flare Launches FXRP to Unlock XRP's DeFi Potential [ 8 ]. Although FXRP itself does not yield returns, its use in lending, liquidity pools, and staking could help drive greater DeFi adoption for XRP XRP Lands on Flare: Will DeFi Save XRP Price in October? [ 7 ].

Flare’s FLR token has appreciated by nearly 8% over the last 24 hours, trading at $0.03 with a market capitalization of $1.9 billion. The network’s total value locked (TVL) is on the rise, indicating increased on-chain participation. As FXRP usage expands, Flare plans to extend its FAssets platform to include wrapped versions of

and , further broadening its DeFi product suite XRP Lands on Flare: Will DeFi Save XRP Price in October? [ 7 ].