Layer 1 blockchain Flare has proposed XRPFi, a new initiative that will bring DeFi functionalities—including staking, lending, and borrowing—to XRP holders.
The Flare team announced the development on April 10, targeting XRP investors eager for DeFi opportunities. This integration will allow XRP enthusiasts to earn passive income on their holdings beyond just price appreciation.
Flare Brings DeFi to XRP
In a recent X post, Flare teased the launch of FXRP, a liquidity pool designed to bring decentralized finance (DeFi) features to XRP. The team emphasized that XRPFi will introduce programmability and utility to XRP, enabling holders to generate yields through DeFi activities.
With this integration, holding XRP will no longer be passive—users can earn additional rewards by staking, lending, and borrowing at predefined rates. The move also opens up new trading and liquidity options for participants.
Flare had previously hinted at plans to integrate XRP into its growing DeFi ecosystem. In March 2024, Hugo Philion, Flare’s co-founder, revealed that low-risk staking options would be introduced, offering passive income to XRP holders.
This development could unlock yield opportunities for over $116 billion worth of XRP. Currently, the XRP Ledger (XRPL) has limited native DeFi capabilities, a gap that Ripple aims to address with upcoming programmability upgrades.
Flare’s Expanding DeFi Ecosystem
Flare’s DeFi ecosystem continues to grow, with its Total Value Locked (TVL) surpassing $76 million. The network first introduced DeFi functionalities in July 2024 with the launch of SparkDEX.
Key protocols in Flare’s ecosystem include:
- Clearpool TPOOL – Dominating 38.03% of Flare’s TVL ($29.1M), offering borrowing/lending with real-world asset (RWA) collateral.
- Sceptre Liquid & Kinetic Pools – Providing liquid staking and lending, attracting $17.2M and $11.48M, respectively.
Market analysts believe XRP’s integration could significantly boost Flare’s DeFi adoption. The news has excited XRP proponents, who see this as a major step toward expanding XRP’s utility beyond XRPL.
---
Disclaimer:
This content is for informational purposes only and not financial advice. The views expressed are the author’s and do not necessarily reflect Binance Square’s stance. Always conduct your own research before investing. Binance Square is not liable for any financial losses.