Spectra launches on Flare, enabling tradable yield for sFLR through Principal and Yield Tokens; stXRP support is planned, opening composable DeFi markets.Spectra launches on Flare, enabling tradable yield for sFLR through Principal and Yield Tokens; stXRP support is planned, opening composable DeFi markets.

Spectra Brings Yield Tokenization to Flare with Live sFLR Market

2025/12/05 22:00
Spectra5

Spectra, the permissionless yield-derivatives protocol, is now live on the Flare network, opening a new lane for users to buy, sell and manage the return streams of interest-bearing tokens. The launch brings Spectra’s core idea, splitting yield into tradable components, to Flare’s growing liquid-staking ecosystem, starting with a market for sFLR and plans to add Firelight’s stXRP shortly.

At the heart of Spectra’s product is a simple but powerful split: any interest-bearing token can be decomposed into a Principal Token (PT) and a Yield Token (YT). PTs carry the underlying principal and are structured to mature to their full face value, so holders can lock in a predictable, fixed outcome. YTs carry the right to the variable future yield the asset will generate, and because YTs trade independently, traders can speculate on, or hedge against, changes in yield rates. That modular design turns yield itself into a composable, tradable primitive that other DeFi builders can use.

For Flare, Spectra’s arrival matters because it brings a new financial primitive to the chain: native yield tokenization. By making fixed-rate, variable-rate and more structured products feasible on-chain, Spectra broadens what developers, liquidity providers and institutional users can build. PTs and YTs offer composability that plain interest-bearing tokens cannot, which in turn can unlock use cases such as using PTs as collateral inside modular lending rails or constructing leveraged yield strategies. That added composability should increase capital efficiency across the ecosystem and create new on-ramps for sophisticated DeFi activity.

Tradable Yield Lands on Flare

Spectra’s initial market on Flare centers on sFLR, the liquid-staked FLR token issued by Sceptre, which already enjoys broad integration across Flare’s apps. At launch, liquidity providers will supply balanced positions that support both PT and YT sides of the market; in return LPs earn swap fees from PT/YT trades and may be eligible for additional incentives such as protocol rewards. The team says the opening weeks will concentrate on deepening pool liquidity so swaps become more efficient and cheaper for users.

Looking ahead, Firelight’s newly introduced stXRP, a liquid staking token for XRP on Flare, is expected to be added after sFLR, further expanding the range of tradable yield markets on the network. Firelight’s stXRP has been rolling out as part of Flare’s broader push to bring liquid staking and F-Assets liquidity to the chain, and its integration with Spectra would give traders and institutions another native instrument for managing yield exposure.

Anyone can interact with Spectra because the protocol is permissionless: users can create markets, mint PTs and YTs, trade yield, or provide liquidity to earn fees. For newcomers, the Spectra app includes a Fixed Rate tool that simplifies getting started. You can obtain PTs to lock in a known payout (for example, pay 1 today and receive a fixed amount later), then explore more advanced strategies as you become comfortable. More experienced traders will find routes to speculate on yield volatility, construct leveraged plays, or piece together novel DeFi products using PTs and YTs as building blocks.

Spectra’s deployment on Flare is a clear signal that on-chain markets for interest rates and future yield are maturing beyond a handful of blue-chip chains. By adding a layer that turns yield into a reusable asset class, Spectra hopes to strengthen Flare’s capital efficiency and support a wave of next-generation lending, collateral designs and structured products, all of which help the network inch closer to institutional readiness.

If you want to explore the new markets, Spectra’s app and documentation are live and accessible from the protocol’s site. For sFLR holders looking to turn passive staking rewards into actively managed positions, Spectra on Flare is now an option to consider.

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