XRP Community Gains DeFi Lending Access with Flare’s FXRP Rollout

TLDR

• Flare has launched FXRP lending through an integration with Morpho, allowing XRP holders to participate in DeFi without selling their assets.
• Users can supply FXRP to earn interest or use it as collateral to borrow assets like stablecoins while keeping XRP on the XRP Ledger.
• The lending markets on Flare operate in isolated pairs, minimizing risks by preventing issues in one market from affecting others.
• Mystic is the primary app for accessing FXRP lending, simplifying the DeFi experience for users and offering a user-friendly interface.
• FXRP is supported alongside FLR and USDT0, providing different vault options based on user risk profiles and yield expectations.

Flare has officially launched FXRP lending through its integration with Morpho, providing a new way for XRP holders to earn interest or borrow assets without selling their XRP holdings. The FXRP token allows users to participate in decentralized finance (DeFi) while keeping their XRP securely on the XRP Ledger. This launch expands the options for XRP holders, offering liquidity and yield generation without giving up their exposure to XRP.

FXRP Lending On Flare

Flare’s new lending markets bring more opportunities to the XRP community. Through this initiative, users can supply FXRP to earn interest or use it as collateral to borrow assets like stablecoins. “This is a big step in bringing DeFi to the XRP ecosystem,” said a spokesperson from Flare. The FXRP token stays on the XRP Ledger, ensuring that XRP holders can participate in DeFi while maintaining control over their assets.

The lending markets are designed to operate in pairs, each with one collateral asset and one borrowed asset. This isolated design aims to reduce risk by preventing issues in one market from spreading to others. Users can choose between different vaults with varying risk profiles and yield expectations. FXRP is now supported alongside other assets like FLR and USDT0, providing flexibility for users based on their preferences.

Mystic Aggregates Vaults for Easy DeFi Access

At launch, Mystic serves as the primary app to access FXRP lending markets. The app aggregates vaults built on top of Morpho, allowing users to interact with these vaults easily. Mystic simplifies the process for newcomers by removing the complexity of low-level protocol interactions. “Mystic makes it easier for users to engage with DeFi and start earning yield from their assets,” said a representative from Flare.

Users can deposit FXRP, FLR, and USDT0 into vaults, earning yield or borrowing against their collateral. The app also provides a streamlined interface to manage assets, making DeFi accessible to those who may be new to the space. Some vaults on Mystic are curated by third parties, such as Clearstar, to foster competition and innovation.

The FXRP lending markets offer XRP holders new ways to utilize their assets beyond just holding or trading. These markets integrate well with existing features like staking and yield products available on Flare. With this launch, Flare positions itself as a DeFi hub, catering to assets with limited smart contract support. By offering new tools without changing base layer custody, Flare expands the opportunities available to XRP users.

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