Flare Network is additionally positioned to enhance the utility of XRP. Most notably, it will position XRP as a key player in the decentralized finance (DeFi) ecosystem. Flare allows holders to use their XRP in DeFi protocols on its network using its FAssets infrastructure. They would be able to do this using FXRP, a wrapped version of XRP. This strategic move is set to release liquidity that has been stagnant for a while, unlocking fresh opportunities for XRP holders along the way.
FAssets, a key part Flare’s infrastructure, produces 1:1 collateralized representations of assets. Flare enables users to mint FXRP through FAssets. This new innovation provides XRP holders with access to DeFi protocols that the Flare network supports. This kind of integration helps to further connect the XRP ecosystem with the larger DeFi space.
The Firelight protocol—a cross-chain, decentralized aggregator for onboarding to the XRP ecosystem, powered by Flare—will soon launch stXRP, a liquid staking solution for the XRP ecosystem. This would allow XRP holders to earn staking rewards without sacrificing liquidity.
"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," - Max Luck, head of growth at Flare.
XRPFi, a decentralized finance (DeFi) ecosystem built around XRP, wants to help accelerate the expansion of XRP in DeFi. XRPFi is leveraging Flare’s network as well as the forthcoming stXRP on Firelight. Following this integration, there will be exciting new ways for XRP holders to explore DeFi protocols and generate passive income.
Liquid staking with stXRP on Firelight has the potential to totally reshape the XRP ecosystem, thanks to Flare. We’re excited about how this innovative solution will give XRPL holders greater flexibility and earning potential through the DeFi ecosystem.
