Flare has launched FAssets on its mainnet, beginning with FXRP v1.2, enabling XRP holders to use their tokens across decentralized finance (DeFi) applications.
The rollout marks the first time XRP can be minted into FXRP on Flare and deployed within DeFi protocols, including decentralized exchanges (DEXs), lending markets, stablecoin minting, and liquid staking.
How FXRP works
FAssets are Flare’s protocol for transforming non-smart contract cryptocurrencies like XRP into tokens usable in DeFi. Each FAsset is a one-to-one representation of the underlying asset, secured by an overcollateralized system of independent agents and Flare’s enshrined data protocols.
Once minted, FXRP is fully composable within the Flare ecosystem and can be integrated directly into protocols without additional workarounds.
To ensure security, the FAssets framework has undergone at least four independent audits, including reviews from Zellic and Coinspect, alongside Immunefi-powered bug bounties and community assessments via Code4rena.
The system is also monitored around the clock by Hypernative, with rapid response measures in place.
Acquiring FXRP
Users can mint FXRP by acquiring XRP on the XRP Ledger, withdrawing to a self-custody wallet that supports Flare and XRPL, and using minting tools such as AU or Oracle Daemon. A cap of 5 million FXRP will apply during the first week, gradually increasing over time.
FXRP can also be acquired via decentralized exchanges, including SparkDEX, BlazeSwap, and Enosys, or through wallets such as Luminite and Oxen Flow, which support built-in swaps and bridging functionality.
Incentives at launch
To encourage adoption, Flare will distribute incentives in the form of rFLR to liquidity pools that contribute to total value locked and on-chain activity.
These include a Kinetic FXRP Supply pool with a target APR of 5%, as well as a Kinetic FXRP/USDT₮0 isolated pool, structured to limit risk with USDT₮0 as the primary borrowing asset against FXRP.
In addition, FXRP/USDT₮0 liquidity pools on SparkDEX, BlazeSwap, and Enosys will carry a target APR of 50%.
In the weeks ahead, FXRP and liquid-staked XRP (stXRP, powered by Firelight) will be integrated more broadly across the Flare ecosystem.
Planned additions include FXRP as collateral in Enosys Loans with an rFLR-incentivized stability pool for the first XRP-backed stablecoin, yield markets with incentivized LP pools, and curated vaults for yield strategies.
Featured image via Shutterstock.
Source: https://finbold.com/xrp-enters-defi-as-flare-launches-fxrp-on-mainnet/
