Flare, Upshift, and Clearstar Unveil earnXRP, New XRP Yield Vault

TLDR

• earnXRP offers XRP holders a non-custodial vault with compounded returns in XRP.
• The product simplifies DeFi access for XRP users with diversified yield strategies.
• earnXRP utilizes Flare’s FAssets system and Upshift’s vault infrastructure.
• Returns generated are automatically compounded back into XRP, offering easy management.

Flare, in collaboration with Upshift and Clearstar, has launched earnXRP, a fully on-chain yield vault designed for XRP holders. This new product allows users to earn compounded, XRP-denominated returns through a diversified, non-custodial vault. The partnership aims to simplify the process of earning yield in the decentralized finance (DeFi) space for XRP users.

The earnXRP vault, based on Flare’s FAssets system, is powered by Upshift’s infrastructure and curated by Clearstar, an on-chain risk management firm. This system allows users to deposit FXRP, a wrapped version of XRP, into a single vault. The vault automatically deploys the funds across a range of diversified strategies and compounds the returns back into XRP, all while keeping the process simple and transparent.

How earnXRP Works

The earnXRP vault allows XRP holders to deposit FXRP directly into a non-custodial vault. In exchange for their deposit, users receive a token called “earnXRP.” This token represents their deposited FXRP, plus any yield generated over time. The vault deploys FXRP into a variety of on-chain yield generation strategies, which include carry trades, staking, cover underwriting via Firelight, and concentrated liquidity provision in automated market makers (AMMs).

When users choose to withdraw their funds, their earnXRP tokens are burned, and the corresponding FXRP is returned to their wallets. All of this is managed automatically by Upshift’s vault infrastructure, making the process hands-off for users. This allows XRP holders to benefit from yield strategies without actively managing or rebalancing positions themselves.

Diversified Yield Strategies and Risk Management

The earnXRP vault aggregates multiple yield generation strategies, offering users diversified opportunities for returns. This approach ensures that funds are deployed across various on-chain strategies, helping to mitigate risk while maximizing potential yield. At launch, the vault employs carry trades, staking, cover underwriting via Firelight, and liquidity provision in AMMs.

Clearstar, an on-chain risk manager, ensures that these strategies are curated in a way that aligns with institutional standards for risk management. This is crucial for maintaining the security and stability of the vault’s operations. The goal is to provide XRP holders with access to professional-grade yield generation while maintaining a high level of security and transparency.

Expanding XRP DeFi Opportunities

Despite being one of the largest cryptocurrencies by market capitalization, XRP has seen limited adoption in the decentralized finance (DeFi) space. Only about 0.1% of XRP’s supply is utilized in DeFi, according to data. The launch of earnXRP aims to address this issue by offering a simplified way for XRP holders to access DeFi and earn yield.

“We’re excited to work with Flare and Clearstar to unlock XRP yield using the new Flare XRP Yield vault,” said Ethan, Growth Lead at Upshift. By providing a streamlined, automated solution, earnXRP seeks to make it easier for XRP holders to participate in DeFi and generate sustainable returns without requiring in-depth knowledge of complex DeFi strategies.

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