Flare Launches FXRP Wrapped Token for XRP DeFi Integration

TLDR

• Flare launched FXRP, a wrapped version of XRP that enables DeFi functionality on the Flare blockchain
• Over $7.1 million in XRP was locked in Flare’s vault within hours of the launch
• FXRP allows XRP holders to lend, borrow, earn interest, and provide liquidity in DeFi protocols
• The system uses overcollateralization and has undergone security audits by Zellic and Coinspect
• Flare plans to add wrapped Bitcoin and Dogecoin assets to expand its multi-chain DeFi capabilities

Flare Network has launched FXRP, a wrapped version of XRP that enables the token to participate in decentralized finance applications. The launch marks a major expansion of XRP’s utility beyond traditional payments and transfers.

FXRP functions as a 1:1 ERC-20 token representation of XRP on the Flare blockchain. Users can mint FXRP by depositing XRP through Flare’s FAssets system, which uses overcollateralization to maintain security.

Within hours of the launch, more than $7.1 million worth of XRP flowed into Flare’s core vault. An XRP validator reported that minting activity showed strong early demand for the new asset.

The wrapped token allows XRP to serve as collateral, liquidity, or staking capital for DeFi protocols on Flare. This gives XRP holders access to lending, borrowing, and yield generation opportunities that were previously unavailable.

RippleX, the development arm of Ripple, highlighted these new capabilities for XRP holders. Institutional firms like Everything Blockchain have already adopted Flare’s XRP DeFi framework for treasury management purposes.

Early Adoption and Incentive Programs

Flare has initially capped FXRP issuance at 5 million units during the first week. The network plans to increase this limit gradually as the system proves stable.

To encourage participation, liquidity pools will distribute rFLR reward tokens. These rewards target annual percentage rates of up to 50% for FXRP/USDT pairs.

Users can mint FXRP through compatible wallets like Luminite and Oxen Flow. They can also acquire FXRP on decentralized exchanges including SparkDEX, BlazeSwap, and Enosys after bridging XRP to Flare.

The emissions committee is directing rFLR rewards toward strategic pools. This includes Kinetic FXRP supply pools and isolated pairs with USDT to build long-term activity.

Security Measures and Technical Framework

Flare’s FAssets protocol has undergone multiple independent security audits. Firms including Zellic and Coinspect conducted these reviews to identify potential vulnerabilities.

The system uses 24/7 monitoring by Hypernative and maintains active bug bounty programs. These measures help identify and address risks proactively.

Flare’s core data services verify prices and network states directly on-chain. The Flare Time Series Oracle and Flare Data Connector reduce reliance on external custodians.

Expansion Plans and Future Development

Flare cofounder Hugo Philion called the launch the culmination of years of development work. He credited a 2018 conversation with Ripple’s David Schwartz as a pivotal moment that shaped the project.

Philion described this as the start of the next phase for Flare. He said more integrations and DeFi applications should be expected over the next 12 months.

Upcoming integrations include liquid staking through the Firelight project’s stXRP token. This will allow FXRP to serve as collateral for loans and vault strategies.

Flare plans to launch wrapped versions of Bitcoin and Dogecoin through the FAssets system. These additions would extend the network’s multi-chain DeFi capabilities further.

The network’s native FLR token currently ranks 80th by market capitalization at approximately $1.9 billion. FLR recently traded near $0.03, reflecting growing interest in the expanding ecosystem.

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