Flare's FXRP Debut Brings XRP into DeFi with 50% APR

7 hours ago

Newsroom

What is FXRP and how is it changing the DeFi landscape?

How does FXRP offer up to 50% APR to participants in its ecosystem?

Why is Flare’s FXRP launch significant for XRP holders?

Flare's FXRP Debut Brings XRP into DeFi with 50% APR — Image source: Unblock Media

Flare Network introduced FXRP, a wrapped version of XRP, enabling its use in decentralized finance (DeFi) applications for the first time.
The system utilizes non-custodial over-collateralization, offering up to 50% APR for early liquidity providers while ensuring robust security.

On September 24, 2025, The Block reported that Flare Network launched FXRP, a wrapped version of XRP, marking a pivotal shift in the cryptocurrency’s utility and enabling its use in decentralized finance (DeFi). The rollout represents the first deployment of Flare's "FAssets" system, designed to integrate non-smart contract tokens into DeFi ecosystems.

FXRP tokens are minted via a unique non-custodial system leveraging over-collateralization. XRP holders deposit collateral with a network of independent agents, who facilitate FXRP creation in a one-to-one ratio with XRP. To ensure security and decentralization, the system incorporates on-chain verification of price and state data. The protocol has undergone rigorous security audits conducted by Zellic and Coinspect, reinforcing trust in its operations.

Incentives of up to 50% annual percentage rates (APRs) for early liquidity pools, such as FXRP/USDT0, aim to drive adoption during the launch phase. To maintain stability, Flare Network has capped minting at 5 million FXRP tokens during the first week, with plans for gradual increases. Users can mint FXRP directly or acquire it through decentralized exchanges, including SparkDEX, BlazeSwap, and Enosys.

Flare Network views FXRP's debut as the dawn of an "XRP DeFi awakening," a vision framed as transformative for XRP's role in decentralized finance. As part of its long-term strategy, the company plans to extend the FAssets system to support other leading cryptocurrencies, such as Bitcoin and Dogecoin, in future developments.

As of September 24, 2025, 15:12 UTC, XRP is trading at $2.914, reflecting a 1.5% increase in value over the past 24 hours, according to CoinMarketCap data.