Flare Network has spent the last two years developing ways for XRP holders to put their assets to work within its DeFi ecosystem. And its latest effort has yielded instant dividends, prompting a flurry of XRP to be trustlessly bridged to Flare within hours of deployment. A collaboration with Xaman has introduced one-click DeFi for XRP – and the XRP Army can’t get enough of it.
More than $27M of FXRP has been deposited into earnXRP following its integration into Xaman’s wallet on February 26, supercharging XRP yield and allowing holders of the asset to earn rewards with no custodial risk. The culmination of everything Flare has been working towards since its blockchain for data launched, the integration makes use of Flare Smart Accounts to deliver seamless cross-chain bridging with zero friction.
Opening the Floodgates for XRP Yield
Flare’s goal has long been to make non-smart contract assets usable on its DeFi-focused network. XRP primarily, but also other legacy assets such as BTC and DOGE that have a large holder base and deep liquidity but lack native yield capability. Flare can deliver that, but for users to take advantage of this, getting funds onto the network needs to be effortless.
The integration of Flare Smart Accounts into Xaman – the leading non-custodial wallet for XRP – looks to have achieved that, judging by the $27M of XRP that’s been transferred within 36 hours of going live. And there’s more good news for XRP holders, with Xaman promising that the process “will get a lot faster, a lot smoother and a lot more convenient over time.”
As it stands, though, it’s already very easy to use, requiring neither the creation of a new wallet nor keys or even the use of gas tokens. Flare Smart Accounts takes care of all that, allowing users to exchange their XRP for FXRP before exploring the many earning opportunities on Flare.
One Token, Many Choices
Flare has long recognized that for FXRP to see serious adoption, there needs to be strong incentives to convert XRP into it and discover yield-generating opportunities on the network. To facilitate this, it’s developed a sprawling DeFi ecosystem that it’s branded “XRPfi.” This is DeFi with a distinct XRP flavor.
There are now a lot of ways to use FXRP on Flare, including some highly enticing pools and vaults. Enosys is currently offering an APR of over 76%, for example, while SparkDEX is dispensing 41% and has $1.2M in TVL. All together, there are around a dozen protocols where FXRP can be used on Flare, earning its holders a steady yield in return.
New Users Take the Plunge
What’s significant about the Xaman Wallet integration is that the users flocking to it aren’t just Flare natives leveraging an easier way to bridge – data shows that a significant proportion of them are new. Within 24 hours of the product’s release, more than 2,400 unique wallets took the plunge and the number of users minting their first FAssets has already exceeded 2,000.
FAssets, incidentally, are created through a protocol that uses Flare’s native data infrastructure to verify and secure token issuance. FXRP was the first FAsset to be released, operating as an ERC-20 representation of XRP that is both non-custodial and verifiably backed, and remains the most popular. Once minted, FAssets such as FXRP can be traded on DEXs, used as liquidity in pools, or serve as collateral to borrow stablecoins and other assets, increasing capital efficiency.
There’s a lot of XRP liquidity that’s currently not being utilized in any shape or form, and the Flare-Xaman collab looks to have activated it. Now, it’s on the move to a network where the bridging is painless, and the yield comes easily. XRPfi, which was already alive, is now thriving. If Flare can continue securing further wallet integrations, TVL on its DeFi network will skyrocket.
Indeed, Total Value Locked on Flare has climbed sharply from $148M at the start of February to $193M in March – and all while the crypto market was experiencing a period of contraction. As the market moves up again and confidence returns, there’s every chance that FXRP minting will accelerate. But the here and now, it’s ticking over nicely as millions of XRP are bridged with every passing day, giving thousands of users their first taste of XRPfi.
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