XRP Investors Can Now Access DeFi Income Without Liquidating

Flare Network, in partnership with Enosys, has unveiled the first stablecoin on Flare backed by XRP, representing a pivotal advancement in broadening XRP’s application in decentralized finance. Developed on Enosys Loans—a decentralized borrowing platform—this stablecoin allows

holders to generate an overcollateralized, trustless stablecoin without liquidating their tokens. The system utilizes Flare’s FXRP (the Flare-based representation of XRP) and wrapped Flare (wFLR) as initial forms of collateral, with future integration planned for stXRP (liquid staked XRP). Through the use of Collateralized Debt Positions (CDPs), users lock up crypto assets to issue stablecoins pegged to the U.S. dollar, ensuring the system remains overcollateralized for security Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ].

The protocol incorporates Flare Time Series

(FTSO), a decentralized pricing oracle, to provide dependable and tamper-proof price data for collateral. In contrast to centralized oracles, FTSO collects pricing information from a wide range of independent data sources, boosting its integrity and resilience against censorship. Such reliability is vital for stablecoin performance in turbulent markets, aligning the interests of borrowers, stakers, and oracle contributors. A critical part of the protocol, the stability pool, mitigates risk by securing issued debt and compensating participants with interest, minting charges, and liquidation incentives Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ].

Enosys Loans features customizable interest rates, moving away from the fixed-rate structure found in protocols like

V2. Borrowers have the flexibility to opt for higher annual rates for increased system stability or select lower rates with more risk, fostering a more dynamic borrowing process. This adaptability, when combined with Flare’s modular framework, makes the stablecoin a blend of Ethereum’s established CDP approach and innovations native to Flare. Future plans include bringing on additional FAssets as eligible collateral, enhancing liquidity diversity Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ].

To encourage participation from the outset, Enosys will reward users with rFLR tokens for engaging in activities such as minting the stablecoin, depositing it in the stability pool, and contributing liquidity to decentralized exchanges (DEXs). This multi-layered incentive system draws inspiration from platforms like

and MakerDAO, aiming to boost total value locked (TVL) and increase user engagement. During the initial growth phase, users can expect temporarily higher returns Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ].

The launch aligns with a landmark achievement for the XRP Ledger, as accounts have exceeded 7 million, reflecting rising adoption. By allowing XRP holders to earn passive income without selling their coins, this stablecoin elevates XRP’s standing in DeFi and supports Flare’s goal for a permissionless liquidity foundation. CEO Hugo Philion pointed out that the stablecoin could streamline NFT transactions and digital asset exchanges, establishing XRP as a vital element in decentralized finance infrastructure Flare Unveils First XRP-Backed Stablecoin, Boosting XRP’s Utility [ 2 ].

The partnership between Enosys and Flare highlights the expanding uses of XRP beyond just holding. With the integration of stXRP, users gain the advantage of earning staking rewards while accessing DeFi services, similar to Ethereum’s staking and lending features. This dual capability enhances XRP’s flexibility, enabling advanced strategies like leveraged trading and bridging to real-world assets. Analysts believe that the protocol’s strong focus on decentralization and trustless systems may establish it as a foundational stablecoin layer within the Flare ecosystem Enosys Launches First XRP-Backed Stablecoin on Flare Network [ 1 ].