Flare Founder Hugo Philion has revealed how his network is utilizing XRP in the decentralized finance (DeFi) space. This includes wrapping the XRP token, which enables users to deploy it on DeFi platforms to earn yield.
Flare Founder Breaks Down How They Use XRP For DeFi
In an ‘XRP in One Minute’ episode, Philion stated that Flare’s mission has been to turn XRP into a collateral asset rather than just a transaction payment asset used on the XRP Ledger. He noted that users can move their XRP holdings to the Flare network in the form of wrapped XRP, which is known as FXRP.
With this, users will then be able to deploy their XRP tokens on several lending protocols on the Flare network, where they can borrow stablecoins against their holdings. They can then deploy these stablecoins in other protocols to earn yields. The Flare founder also mentioned a second way to earn yield on one’s XRP holdings on the network.
This involves placing one’s holdings in a vault, either on the Ledger or, soon, on the Flare network. This then enables a counterparty to take the XRP to a financial intermediary who can then deploy it into the markets and earn yield. Deploying the FXRP on the network has notably become one of the most common ways to earn yield in the XRP ecosystem.
FXRP currently has a market cap of almost $203 million, with just over 158 million tokens in circulation on the Flare network, according to CoinGecko data. This comes even as XRPL developers move to implement a native lending protocol on the network, allowing users to earn yields without moving their holdings to other networks.
Plans To Boost DeFi On Flare
In an X post, Hugo Philion revealed that they are sourcing more stablecoin liquidity against which XRP can be deployed. Furthermore, they are working on expanding partnerships with institutions that have already committed to using XRPFi on Flare. He noted that the idea is to extend the range of deployment options.
Related Reading: How The Likes Of XRP, Solana, And Cardano Could Make A Comeback With This New Crypto Bill
Meanwhile, the Flare founder also revealed that they are acquiring new partners who are whales, so they can deploy their holdings into XRPFi on the network. At the same time, they are working towards trials with RWAs using Flare Confidential Compute and broadening the use of FDC through partnerships with entities that need such data.
The Flare founder had highlighted these points in response to their plans to increase the total value locked on the network. DeFiLlama data shows that the total value locked in DeFi on the network is $144 million.
At the time of writing, the XRP price is trading at around $1.28, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Credit: Source link
