Flare Network Bridges XRP to DeFi
Flare Network is bridging XRP to DeFi by using its smart contract system and FAssets. The XRP Ledger (XRPL) does not support smart contracts, which has limited XRP’s use in decentralized finance. Flare Network removes this gap by wrapping XRP into a format usable in DeFi protocols.
FXRP is the wrapped version of XRP. It is fully backed and can be used within Flare’s network. The FAssets system powers this process. By staking FXRP, users receive stXRP—a liquid staking token. Max Luck, head of growth at Flare, explained,
“This setup allows XRP holders to unlock native-like staking yields on an asset that otherwise doesn’t support staking, enabling passive income without sacrificing liquidity.”
Flare Network and Its Purpose
Flare Network operates as a full-layer blockchain built for data applications. Its purpose is to allow assets without smart contract support, such as XRP, to interact with DeFi. This system keeps the original asset secure while offering new ways to use it in finance protocols.
Institutions Enter XRPFi With Large-Scale FXRP Allocations
Institutional interest in XRPFi is increasing. Uphold, a digital asset platform holding more than 1.8 billion XRP, plans to join the FAssets ecosystem. Nasdaq-listed firm VivoPower also announced a $100 million XRP deployment on Flare Network. These allocations connect large XRP holders to the expanding XRPFi system.
With XRP’s total market capitalization above $130 billion, the entry of institutional players into XRPFi adds new liquidity to decentralized applications. FXRP allows participation in DeFi without altering the original XRP’s structure.
In this setup, the FXRP used remains active in Flare’s Secured Service Networks, which help support DeFi infrastructure. At the same time, holders use stXRP as a flexible asset in decentralized markets. These parallel layers expand XRP’s reach while maintaining core asset integrity.
stXRP Launches Liquid Staking on Firelight Protocol
stXRP is now live through Firelight, a protocol supported by Flare Network. Users deposit FXRP into Firelight’s Launch Vault, which then mints stXRP at a 1:1 ratio. The stXRP token is based on ERC-20 standards, allowing full use across DeFi services like lending markets and token swaps.
The deposited FXRP stays locked in the Secured Service Networks. These networks operate in the background and support various blockchain ecosystems. This system enables the original stake to earn potential rewards, while users interact with stXRP on the frontend.
Firelight also introduces Firelight Points, which users earn by holding or using stXRP. These points may influence future updates or distribution methods inside the ecosystem. The setup adds composability to stXRP across lending, trading, and liquidity pools within Flare-based DeFi.
The stXRP token lets users move funds through multiple applications without giving up their original FXRP stake. As part of the XRPFi expansion, it connects XRP holders to a broader DeFi environment, supported by Flare Network’s infrastructure.