XRP's DeFi Capabilities Revealed: Flare Protocol Enables Holders to Access Stablecoin Loans

Enosys has introduced the first stablecoin protocol on the Flare Network that uses XRP as collateral, bringing a decentralized lending solution that enables

holders to create overcollateralized stablecoins without liquidating their tokens. The Enosys Loans platform utilizes a Collateralized Debt Position (CDP) system, where users can deposit Flare XRP (FXRP) and wrapped Flare (wFLR) to back stablecoins tied to the U.S. dollar. The protocol utilizes the Flare Time Series (FTSO) to provide decentralized and tamper-proof price feeds for collateral evaluation Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ]. This represents XRP’s first integration within a stablecoin borrowing model, broadening DeFi liquidity opportunities for XRP holders Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ].

At the heart of Enosys Loans, the CDP framework gives borrowers the ability to set their preferred interest rates, letting them choose higher APRs for more security or opt for lower rates at the cost of higher liquidation risk if the stablecoin drifts from its peg. The protocol is supported by a stability pool, which allows users to earn rewards from minting fees, interest payments, and liquidations. This setup maintains the system’s solvency while motivating users to supply liquidity Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ]. The protocol is a fork of

V2, an established CDP platform on Ethereum recognized for its governance-free approach and strong peg enforcement First-Ever XRP-Backed Stablecoin Loans Go Live on Flare via Enosys [ 3 ]. By adapting Liquity’s architecture for Flare, Enosys enables custom APR settings and supports XRP-native collateral, differentiating itself from other CDP protocols Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ].

Flare’s FTSO is central to the protocol’s trustless and decentralized operation. Unlike single-source oracles, FTSO compiles price information from a variety of signal providers, which minimizes the risk of censorship and bolsters market reliability Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ]. This decentralized pricing ensures incentives are aligned among borrowers, stakers, and oracle contributors, strengthening the ecosystem’s robustness. Enosys intends to add support for stXRP, Firelight’s liquid staking token, so XRP holders can both earn staking yields and use their assets as collateral for CDPs. This dual capability is similar to Ethereum’s lending and staking systems, further embedding XRP in Flare’s DeFi landscape Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ].

To encourage participation, Enosys will provide rFLR rewards to users who engage in key activities such as minting stablecoins, staking in the stability pool, and adding liquidity to decentralized exchanges. This incentive system follows models proven by protocols like

and MakerDAO, aiming to boost total value locked (TVL) and increase user participation Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ]. The protocol is also designed for interoperability, letting its stablecoins interact with other DeFi applications on Flare, such as liquid staking derivatives and bridges to real-world assets. This flexibility positions Enosys Loans as a key liquidity foundation for DeFi solutions built around XRP Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ].

Enosys sees its platform as a potential cornerstone for stablecoin infrastructure, similar to MakerDAO but with XRP as the primary collateral. Looking ahead, the team plans to include additional Flare-native assets, such as FLR and other FAssets, to construct a completely decentralized liquidity ecosystem Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ]. The launch, set for September 19, 2025, coincides with key regulatory changes in the cryptocurrency industry, including the U.S. GENIUS Act and the EU’s MiCA framework. While these regulations focus on compliance and oversight for stablecoins, Enosys’s system centers on open access and modular integration within Flare’s architecture DOGE, XRP Get ETFs. Traders Say ‘Meh:’ Crypto Daybook Americas [ 4 ]. Experts believe that combining Ethereum’s CDP expertise with Flare’s unique features could help Enosys become a leading stablecoin solution within alternative Layer 1 DeFi ecosystems Enosys Loans Lets Users Mint First XRP-Backed Stablecoins on … [ 2 ].