Flare has introduced FXRP, a wrapper of XRP which allows the token to be utilized in decentralized finance. This is a major move by the two networks. Accordingly, the XRP can be a 1:1 ERC-20 token on Flare blockchain.
Flare’s FAssets System Goes Live, Locking Over $7.1 Million in XRP Within Hours
Within hours of launch, more than $7.1 million worth of XRP had already flowed into Flare’s core vault, according to data shared by an XRP validator (@Vet_XO). That figure is climbing, with minting activity showing strong early demand for the new asset.
Users can now lock XRP and mint FXRP through the FAssets system by Flare. This provides them with collateralized and decentralized access to DeFi services.
This system lets XRP act as collateral, liquidity or staking capital for DeFi protocols on the Flare network. This will provide XRP holders with fresh opportunities beyond payments and money transfer use cases to wider decentralized finance purposes.
RippleX (the development arm of Ripple) highlighted that FXRP enables lending, borrowing, and yield generation opportunities that were not previously available for XRP holders. This potential is already drawing institutional interest. Firms like Everything Blockchain have adopted Flare’s XRP DeFi framework for treasury management.
Flare cofounder Hugo Philion called the launch a culmination of years of development. He thanked validators, infrastructure providers, and partners for supporting the network since its early days.
Philion also credited a 2018 conversation with Ripple’s David Schwartz, also known as Joel Katz, as a pivotal moment that shaped the project. The Flare cofounder further said that this accomplishment is the start of the next phase. He added that more integrations and DeFi applications should be expected over the next 12 months.
FXRP Launch Boosts Optimism While Highlighting DeFi Risks
Those who have responded indicated that XRP becoming part of DeFi through Flare will enable the token to be more useful in the long-term. FXRP is built using a decentralized mechanism and every action is tracked on the blockchain to inspire trust. Flare has also introduced an XRP-backed stablecoin to strengthen the token’s role in decentralized finance.
But a notable community voice and XRPL validator (Vet) has told investors that every investment with rewards has risks. Vet stated that there’s an amount of risks that comes with each ounce of yield. They added, “Some projects will rug and go belly up.”
Source: https://coingape.com/xrp-defi-gets-major-boost-as-flares-fxrp-goes-live/
