Flare has announced the successful deployment of its first FAsset, known as FXRP, on the mainnet, marking a significant milestone for XRP holders as it provides a direct pathway for the cryptocurrency into Flare’s EVM-compatible decentralized finance (DeFi) ecosystem. This development allows XRP holders to mint FXRP directly or swap it through supported decentralized exchanges (DEXs), enabling a multitude of uses in trading, lending, and providing liquidity.
Historically, while XRP has consistently ranked among the top cryptocurrencies by market capitalization—peaking at over $170 billion—its integration into the DeFi space has been limited. Unlike other cryptocurrencies such as Ethereum (ETH) or Solana (SOL), XRP was not initially designed with smart contracts, making it challenging to utilize within various DeFi protocols. However, with the introduction of FXRP, this scenario is set to change, as FXRP officially became available on Flare on September 24.
FXRP operates as a one-to-one representation of XRP on the Flare blockchain, which is designed specifically to facilitate the inclusion of non-smart contract assets in the DeFi realm. Once minted, FXRP can be leveraged for decentralized trading activities, providing liquidity, or obtaining loans. Additionally, Flare has plans to introduce liquid staking through a service called Firelight, which would allow XRP holders to earn staking rewards while maintaining the liquidity of their assets.
To ensure the security of the FAssets protocol, Flare has implemented a robust security framework that includes multiple layers of protection. The protocol has undergone over four independent audits from reputable firms like Zellic and Coinspect, as well as community-led evaluations via Code4rena. In addition to these audits, Flare has established bug bounty programs with Immunefi and has employed 24/7 monitoring services from Hypernative to enhance security. These measures are essential, given that FAssets are responsible for managing cross-chain processes such as collateral handling and trustless bridging, prompting a need for ongoing security assurances, especially for institutional and large-scale investors.
For those interested in acquiring FXRP, the minting process is straightforward. Users can start by purchasing XRP on the XRP Ledger (XRPL). If their XRP resides on a cryptocurrency exchange, they must withdraw it to a self-custody wallet that supports both Flare and the XRPL, such as Ledger or Bifrost. Following that, they can visit the AU or Oracle Daemon to begin minting FXRP. In an effort to ensure a secure rollout, Flare has instituted an initial minting cap of 5 million FXRP during the first week, which will increase gradually as the program develops.
For individuals opting to swap their tokens for FXRP, decentralized exchanges including SparkDEX, BlazeSwap, and Enosys provide these services. Users can easily connect their wallets and use the swap features on these platforms.
FXRP’s functionality is comprehensive within Flare’s DeFi ecosystem. It allows for trading and liquidity provisioning on platforms such as SparkDEX and BlazeSwap. Moreover, FXRP can be used for borrowing and lending through Kinetic or for future liquid staking via stXRP on Firelight. To incentivize initial adoption, Flare is distributing rewards in the form of rFLR to participants in FXRP liquidity pools, with anticipated annual percentage rates (APRs) ranging from approximately 5% for supply markets to as high as 50% for specific FXRP/USDT liquidity pools. Moreover, Flare’s roadmap hints at forthcoming CDP-based stablecoin loans and yield vaults tied to FXRP.
The launch of FXRP signifies a new phase for XRP, effectively broadening its role in decentralized finance. XRP holders can now access functionalities like borrowing and trading—previously unattainable—while developers can utilize FAssets as modular components for integrating XRP into DeFi applications. Looking ahead, Flare envisions expanding its FAssets program to include Bitcoin (BTC) and Dogecoin (DOGE), further enriching its ecosystem by ushering more non-smart contract assets into the world of decentralized finance.
