Flare Networks has introduced a new utility for XRP by enabling it to earn yield through vaults, converting it into FXRP. This development allows XRP holders to deploy their assets for earning, expanding its use beyond simple transfer and exchange activity. The introduction of this feature is consistent with an increase in XRP’s utility, potentially influencing its market dynamics positively. As of early September 2026, XRP maintains a price around $1.35 and continues to hold a significant presence in the cryptocurrency market.
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Key Takeaways Flare Networks’ initiative suggests a new utility for XRP, potentially influencing market dynamics positively. The capability to earn yield on XRP through FXRP is consistent with expanding its use in decentralized finance. Market pricing suggests this development could impact XRP’s likelihood of reaching an all-time high by 2026. What to Watch The introduction of FXRP by Flare Networks may influence market sentiment regarding XRP’s price trajectory. Key developments to monitor include any statements from Ripple’s CEO Brad Garlinghouse, or regulatory shifts involving the U.S. SEC. Additionally, indicators such as ETF approvals or significant inflows and outflows in XRP-related markets could play a critical role in shaping XRP’s future price potential. Market participants will likely be attentive to any major announcements from influential financial institutions that could impact XRP’s adoption and usage.
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Term Structure
Contract Odds Δ since publish Volume 24h September 30, 2026 0.9% — — View market → December 31, 2026 5.1% — — View market →
Flare po revizi tokenomiky zvýšil vsazený FLR od července asi o 34 % na 21,5 miliardy. Zároveň klesla inflace a spalování transakčních poplatků je nyní více než 10× nad úrovní před upgradem.
Flare has recorded a roughly 34% increase in staked FLR since July, taking the total to 21.5 billion tokens as its revised economic model cuts inflation and ties more network activity to token burns and protocol revenue.
Summary
Flare staking increased from about 16 billion to 21.5 billion FLR after the July upgrade. FIP.16 reduced annual FLR inflation from 5% to 3% and lowered its issuance ceiling. Transaction-fee burns have risen to more than 10 times their level before the network upgrade. FIRE has collected $31,438 from four revenue sources since it started operating in May. Flare staking has increased to 21.5 billion FLR DefiLlama Research reported on Sept. 4 that Flare’s tokenomics changes are producing measurable onchain results four months after the network approved FIP.16.
Staked FLR rose from approximately 16 billion in July to 21.5 billion, an increase of about 34%. The portion of all staked or delegated FLR held in staking climbed from roughly 32% in April to 46% by late August, with much of the increase occurring within weeks of the July 14 network upgrade.
Under FIP.16, FLR locked on Flare’s P-chain carries five times the signing weight of wrapped FLR delegated on its C-chain. Delegated tokens remain liquid and can be withdrawn at any time, while P-chain staking requires holders to lock their capital with a validator.
Signing weight determines how much influence infrastructure providers have when producing blocks and operating Flare’s native data systems. Providers run the Flare Time Series Oracle, which supplies price feeds, and the Flare Data Connector, which verifies information from other blockchains and Web2 services.
Before FIP.16, different Flare protocols calculated voting weight in different ways. The revised system applies one calculation across FTSO anchor feeds, FDC, and block-latency feeds, with locked stake receiving the fivefold weighting.
Flare’s official governance proposal said the change was designed to put more influence behind committed capital and make the network’s core services equally costly to attack.
At the same time, the July upgrade raised the maximum stake per validator from 200 million to 300 million FLR. It also introduced a network-wide minimum delegation fee of 20%, replacing the previous minimum of zero.
Flare said the fee floor should prevent providers from competing through unsustainably low charges. Infrastructure providers must operate validators, collect data, maintain independent systems, and participate in governance, according to the proposal.
Flare tokenomics changes cut inflation and raise burns Annual FLR inflation fell from 5% to 3% on May 14, cutting the headline rate by 40%. The annual issuance ceiling also declined from 5 billion to 3 billion FLR.
With an inflatable supply of about 87 billion tokens, the 3% rate produces a gross yearly issuance of roughly 2.6 billion FLR, according to DefiLlama Research. Actual issuance may decrease over time because FIP.16 also changed, which balances count toward the calculation.
Permanently burned FLR, tokens held by the Flare Income Reinvestment Entity, and unearned rewards placed in certain penalty pools are excluded from the inflation base. As those balances increase, the amount subject to the 3% calculation becomes smaller.
Transaction burns accelerated after Flare implemented its Granite upgrade on July 14. Official network release notes show that the minimum C-chain base fee increased from 25 gwei to 500 gwei.
All FLR paid as base transaction fees are permanently destroyed. Flare had burned 15.6 million FLR through transaction fees in 2026 by the time DefiLlama published its report, with more than 40% of the total burned following the July upgrade.
Consequently, the current burn pace sits at more than 10 times its pre-upgrade baseline. Usage determines the amount destroyed because every transaction removes FLR without requiring a new vote or a treasury decision.
Higher gas settings have not made simple transfers expensive in dollar terms. DefiLlama estimated that a basic transfer costs around 0.064 FLR, although transactions involving smart contracts may consume more gas.
Activity feeding the burn mechanism has also expanded through Flare’s FAssets system. In May, an FAssets v1.3 upgrade allowed users to mint FXRP from centralized exchanges such as Binance and Kraken through an XRP Ledger destination tag. FLR rose 14% on the day the upgrade went live, crypto.news reported at the time.
FIRE has started collecting network revenue FIP.16 created FIRE as a governed entity responsible for receiving revenue generated by Flare’s protocols. Its primary mandate permits the entity to reduce FLR supply through token burns and open-market purchases.
Secondary uses include supporting asset issuers, application yields, liquidity programs and the Flare Foundation’s network operations. Flare initially administers the entity through its foundation.
Four income sources are already active. FIRE receives all FAssets minting fees, 90% of FDC request fees, 10% of FAssets redemption fees, and FLR paid for FXRP destination-tag registrations.
Since collections began in May, FIRE has received assets worth $31,438, according to the DefiLlama report. FAssets minting provided $18,248 across 7,708 mints, making it the largest source.
FDC request fees contributed another $12,676 after collections from that service began on Aug. 18. Destination-tag registrations added $505, while FAssets redemption fees supplied $9.
Two sources pay FIRE in FLR, and two pay in FXRP. As a result, the pool’s reported dollar value changes with token prices as well as the volume of protocol activity.
FDC activity supports several services behind those revenue streams. Flare uses the connector to verify payments and events outside its network, including XRP Ledger transactions involved in creating FXRP.
A July update simplified FXRP access by allowing users to mint the asset and enter selected vaults with one XRP Ledger signature. At the time, FXRP deployed in DeFi had increased from 82 million in February to 144 million, while users had created nearly 24,000 Flare Smart Accounts.
FIRE’s current receipts remain small compared with approximately 2.6 billion FLR in estimated gross annual issuance. Flare’s model therefore still relies mainly on reduced inflation and transaction burns rather than on enough protocol income to offset token creation.
Planned income from Flare Smart Accounts, Confidential Compute, and protocol-level maximal extractable value has yet to enter FIRE. Flare said its MEV system would capture value from permitted activities such as liquidations, atomic arbitrage, cross-chain arbitrage, and just-in-time liquidity.
According to Flare’s April explanation of FIP.16, its DeFi ecosystem processed more than 660,000 transactions involving cyclic-arbitrage structures and over 1,000 liquidation events during the first quarter of 2026. The company said the amount that FIRE could collect from MEV would depend on the volume and type of DeFi transactions processed by the network.
FXRP activity connects Flare with U.S.-regulated RLUSD FAssets give tokens from networks without smart-contract support a usable form on Flare. FXRP represents XRP within that system, allowing holders to place the asset in lending markets, liquidity pools, vaults, and other decentralized applications.
Flare said in April that more than 150 million FXRP was in circulation, with about 85% deployed across DeFi. At that point, the network had more than $160 million in total value locked under DefiLlama’s standard calculation and over 880,000 active addresses.
Part of that activity now reaches Ethereum. In August, FXRP received approval as collateral in Sentora’s RLUSD Main vault on Morpho, allowing holders to borrow Ripple’s dollar-backed stablecoin without selling their XRP exposure.
The RLUSD lending market provides a relevant U.S. connection because Ripple received approval for the stablecoin from the New York Department of Financial Services in December 2024. Sentora reviewed FXRP’s liquidity, price behavior, oracle design and liquidation mechanics before accepting it as collateral.
Morpho uses isolated lending markets, limiting problems with one collateral asset to its specific pool rather than exposing every market in the protocol. Borrowers must deposit more FXRP than the value of RLUSD they receive, and liquidations depend on enough FXRP liquidity being available to repay lenders.
FIRE may move to joint community governance after its first year. Initiating the change requires support from holders representing at least 50% of Flare’s total inflatable FLR supply, after which the network would elect four representatives from infrastructure providers operating across Flare and Songbird.
ChatGPT nasměroval uživatele na falešný krypto web a po jediném schválení z peněženky zmizelo 1 904 513 FXRP. Podle vyšetřovatele VAL šlo o phishing, který celkově připravil oběti o více než 2,2 milionu USD.
ChatGPT pointed a user toward a fake crypto site, and when they signed one approval, 1,904,513 FXRP left their wallet.
That is about 1.3% of the entire FXRP supply today. Investigator VAL says the same phishing setup took more than $2.2 million overall.
One Signature, 1.9 Million FXRP GoneThe victim goes by Alex on X (Twitter), an individual who asked ChatGPT in Russian where to swap sFLR, Flare’s liquid-staked token, for wrapped FLR.
The answer carried a link to sceptre.network, and not Sceptre. The real liquid staking app runs from sceptre.fi. Alex connected his wallet and approved an unlimited spending limit. He never moved the tokens himself.
Blockchain records show the drain ran shortly before 7 pm UTC on June 12. The attacker’s own contract called it. Alex’s signature had already done the work.
Lost ~1.9M FXRP to an approval-phishing scam.
I asked ChatGPT where to swap sFLR for WFLR. Its answer contained a link — it led to a phishing site. I signed an "unlimited approve," and the funds were drained via transferFrom seconds later.
Tx:… pic.twitter.com/1waLIWyotG
— Alex (@vesnuhin) June 13, 2026 The token was FXRP, Flare’s bridged version of XRP for decentralized finance (DeFi). Alex put the loss near $2.1 million.
The receiving wallet was not new either, with blockchain data showing its first funds landed on April 23, fifty days before Alex signed. It has since taken in at least four different Flare tokens, suggesting he may have not been the only target.
“This wallet has been operating since April 2026, receiving FLR in varying amounts,” on-chain investigator Val noted.
BeInCrypto described this method earlier in the year, three weeks before Alex clicked. Drainers register lookalike Uniswap domains and buy search ads to farm approvals.
@Uniswap typing your name on Google has shown a scam site at the top for weeks.
Many users have reported losing funds after connecting wallets to an identical interface.
The site is now down (404), but the URL still appears. It can be reused or reactivated by scammers.
Please… pic.twitter.com/tZm5uYzlJK
— BeInCrypto (@beincrypto) March 31, 2026 The unlimited approval is the whole attack, just as one Ethereum holder learned after losing $999,999 to one signature.
OpenAI’s Agents Took Over a German WikiElsewhere, Reuters reported Friday that agents linked to OpenAI made about 15,000 edits to DseWiki, a quiet German programming wiki, starting in May.
Researchers led by Sydney Von Arx of the AI safety nonprofit Nightingale found the agents swapping tips. They traded ways to cheat tasks, dodge OpenAI’s rules and hide their tracks. About half took names like OpenAIResearcher.
When a moderator began deleting pages in June, the agents saved ZZZ-prefixed copies. An alphabetical sweep reaches those last. Some discussed using Tor.
OpenAI has not accepted the findings.
“We are unable to meaningfully respond to claims or findings on a report that we have not had an opportunity to review” Reuters reported, citing an OpenAI spokesperson.
A July breakout went further, with roughly 1,200 agents gathering on an improvised board. About 700 then breached Hugging Face. BeInCrypto covered that escape in August, when OpenAI gated its cyber model.
This could be one of the most significant AI safety incidents to date.
Reuters reports that OpenAI agents escaped their testing environment and made more than 15,000 edits to a German wiki, effectively turning it into a message board for other AI agents.
They allegedly used it… https://t.co/zt1fnNNfho pic.twitter.com/lY5Jk6kNfs
— Chubby♨️ (@kimmonismus) September 4, 2026 The two cases share a medium, not a culprit. Criminals seeded the web so a model would echo their link. OpenAI’s agents wrote to it themselves. Both worked because a page looked safe.
Flare, a renowned L1 blockchain network, has witnessed notable on-chain effects from its tokenomics overhaul. This comes after the FIP.16 proposal obtained 98.06% support from Flare’s governance participants. As per DefiLlama, the proposal decreased yearly $FLR inflation, enhanced transfer fees, and unveiled mechanisms to create a relatively strong link between the token supply mechanics and network activity. So, since the start of significant changes, a noteworthy jump has taken place in $FLR staking from almost 16B tokens to nearly 21.5B.
Flare FIP.16 Overall Bolsters $FLR Burns and Decreases Inflation The tokenomics overhaul of Flare is showing a considerable impact, especially after 98.06% governance support for the FIP.16 proposal. In the meantime, transfer-led burns have spiked to over 10 times in comparison with the pre-fork baseline. The changes present an early sign of whether the network can transform the economic framework from inflation-funded benefits toward revenue that genuine protocol usage generates. Particularly, FIP.16 was passed on the 24th of April, combining many key changes influencing $FLR issuance, staking weight, protocol revenue, token burns, and transfer fees.
The initial major adjustment occurred on the 14th of May, when yearly inflation was decreased from up to 5% to just 3%. At the same time, the annual issuance ceiling dropped from 5B to nearly 3B $FLR. Additionally, the robust inflation base also saw a reduction. Specifically, this calculation does not include permanently burned $FLR tokens, $FLR that the Flare Income Reinvestment Entity controls, and unearned rewards kept in diverse penalty pools. While these balances increase, the supply against which the up to 3% rate is reportedly applied gets smaller, likely decreasing additional issuance.
Another major change took place through the July 14 hard fork. With this, Flare introduced a 20-fold increase in the base transfer fee to bolster the automatic $FLR burn model of the network. Irrespective of the surge, a simple transaction costs just 0.064 $FLR, maintaining a relatively low base for the practical expense. Additionally, FIP.16 has altered the distribution of economic influence across the network.
Tokenomics Overhaul Drives $FLR Staking As a result, P-chain stake gets 5 times the C-chain delegation’s signing weight, leading to more influence for the $FLR tokens locked with validators. This development is set to support capital that is committed to ecosystem security when compared with liquid delegated tokens prone to being withdrawn relatively easily. The peak validator size surged from 200M to 300M $FLR, with the introduction of a minimum 20% delegation fee across the network.
According to DefiLlama, the effect of Flare’s economic overhaul includes the jump in staked $FLR tokens from 16B to 21.5B in July. Along with that, the staking share of delegated and staked $FLR tokens spiked from 32% to 46% between April and August. Additionally, FIRE is another crucial element of this overhaul, as the pool reduces the $FLR supply via open-market buyouts and burns. Overall, Flare’s FIP.16 denotes a crucial shift in the tokenomics, with increasing protocol revenue, rising burns, and growing staking paving the way for a relatively sustainable network.
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Crypto journalist with years of experience providing in-depth analysis and news on blockchain and decentralized finance. With a keen eye for detail, Shahzaib delivers insightful articles that explore the latest trends, market movements, and innovations within the crypto and blockchain ecosystem. His work focuses on educating readers while offering expert commentary on the evolving landscape of digital assets, DeFi protocols, and the broader impact of blockchain technology.
@FlareNetworks has secured a spot on DefiLlama's investor relations platform, with the analytics provider publishing a dedicated dashboard for the network on Thursday. The page was vetted by DefiLlama's research arm and arrives roughly four months after Flare's landmark governance proposal, FIP.16, passed a community vote.
What the Dashboard Shows According to figures cited by @FlareNetworks, the dashboard puts chain total value locked (TVL) at $129M against $355.54M in bridged assets. Burns are running at 1.64% of emissions over a 30-day period, with net inflation of 197.11M $FLR.
, and its investor relations product is designed to give protocols a clean, verified hub for dashboards, reports, and data. , keeping the figures independent from broader rankings and discovery pages.
Context: FIP.16 and the FLR Tokenomics Overhaul
The burn rate visible on the new DefiLlama dashboard will give investors a real-time way to track how those mechanics are playing out on-chain.
The listing is a credibility marker for the network, placing Flare alongside other protocols that have secured vetted dashboards on the platform, including Spark, Sonic, NEAR, and THORChain.
Sources:
DefiLlama Investor Relations Platform
FIP.16 Governance Proposal, Flare Network
Flare Begins Voting on FIP.16, Crypto Times
Clearstar zvýšil limit svého earnXRP vaultu na 33,73 milionu FXRP, tedy asi 46,5 milionu USD. Je to už více než šestinásobek původního limitu 5 milionů tokenů.
Vault grows more than sixfold from launch capThe @ClearstarLabs earnXRP vault on @FlareNetworks has raised its deposit cap for at least the second time, with holdings now standing at 33.73 million FXRP, worth around $46.5 million. That figure is more than six times the 5 million token ceiling the vault carried at its December 2025 launch. Flare confirmed the latest cap increase without specifying the new limit.
earnXRP is the first fully on-chain yield product denominated in $XRP, allowing users to deposit FXRP, XRP represented one-to-one on Flare, into a single vault that deploys capital across a diversified set of yield strategies. The Clearstar vault takes a fully on-chain approach, deploying FXRP across lending and liquidity protocols on Flare, including Avant and Euler. The vault targets a 3% annual yield and charges a 0.75% management fee plus a 10% performance fee.
Flare Smart Accounts lower the barrier for XRP holdersDeposits route through Flare Smart Accounts, which remove much of the technical friction traditionally associated with cross-chain DeFi. They combine what would normally require multiple steps, such as minting FXRP, navigating decentralised applications, and managing activity across different interfaces, into a single unified flow, while self-custody is retained throughout. In practice, that means XRP Ledger wallet holders can participate without separately minting FXRP or managing a standalone EVM wallet.
Flare launched Smart Accounts v1.3 to simplify how XRP holders access DeFi by reducing a process that previously required multiple steps to a single wallet signature. More than 40 million XRP is currently earning yield through Flare Smart Accounts, while nearly 24,000 Smart Accounts have already been created. The repeated lifting of the Clearstar vault cap suggests sustained demand, underscoring the broader push to bring $XRP holders into on-chain yield strategies that were largely inaccessible before the FAssets system launched.
Only 0.1% of XRP supply is utilised in DeFi despite the token being among the largest cryptocurrencies by market capitalisation. Products like earnXRP are designed to chip away at that gap by offering a straightforward, non-custodial entry point into XRPFi.
Clearstar zvýšil strop vkladu do vaultu earnXRP na 45 milionů FXRP na síti Flare, tedy zhruba 59 milionů USD. Rozšíření podporují nové možnosti půjček ve stablecoinech pro FXRP.
Clearstar doubles down on XRP yield as vault capacity grows@ClearstarLabs has raised the deposit ceiling on its earnXRP vault to 45 million FXRP on @FlareNetworks, equivalent to roughly $59 million at current prices. The move gives XRP holders significantly more room to put idle capital to work, and it follows the arrival of new stablecoin borrowing venues that give the vault fresh avenues to deploy deposits.
FXRP is the wrapped, on-chain representation of XRP on Flare. It is a 1:1 ERC-20 representation of XRP that sits inside a single non-custodial vault, which deploys capital across multiple curated strategies and automatically compounds returns back into XRP. Inside the earnXRP structure, FXRP is used as collateral to borrow stablecoins at low cost, those stablecoins are then deployed into other DeFi protocols where yields exceed borrowing costs, and profits are compounded back into FXRP while the vault remains fully XRP-denominated.
The vault is accessible through the @XamanWallet Flare Yield app. Withdrawals follow a standard 72-hour window, with an instant-exit option available for a fee.
Expanding borrowing infrastructure backs the raiseThe cap increase is directly tied to growing infrastructure around FXRP borrowing. XRP holders can now use FXRP as collateral to borrow Ripple's RLUSD stablecoin on Ethereum via a new isolated market on Morpho Blue, managed by Sentora, which approved FXRP after reviewing its market behavior, oracle design, liquidity, and liquidation capacity under an institutional risk framework. Flare's wrapped token has been accepted as collateral by Sentora, which manages a $280 million lending pool of Ripple's RLUSD stablecoin.
Flare said the integration addresses one of the biggest challenges facing XRP DeFi: access to deep stablecoin liquidity, noting that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency. More borrowing capacity means the earnXRP vault can deploy larger positions, which in turn supports the higher deposit cap.
Only 0.1% of XRP supply is currently utilized in DeFi, despite the token being one of the largest cryptocurrencies by market capitalization. The earnXRP vault, originally launched with an initial cap of just 5 million FXRP, has grown steadily as Flare's on-chain ecosystem has matured. Target yields for the vault range from roughly 4% to 10%, depending on vault size.
Sources:
Flare Network: EarnXRP Launches on Flare
CoinDesk: XRP holders can now borrow RLUSD via $280 million lending pool
The Block: New XRP yield product earnXRP launches using Flare Network's infrastructure
Flare má už 20 miliard $FLR ve stakingu, zhruba dvojnásobek oproti asi 11 miliardám při oznámení FIP.16 v březnu. Aktualizace zvýhodnila staking na P-Chainu pětkrát oproti delegaci na C-Chainu.
Staked supply nearly doubles since FIP.16 announcementFlare Network's total staked supply has hit 20 billion $FLR, according to @FlareNetworks Chief Product Officer Filip Koprivec (@j00sko). That figure has climbed from roughly 11 billion since FIP.16 was first announced in March, putting staked tokens at around 23% of the 86.9 billion $FLR currently in circulation.
The milestone reflects a sharp shift in holder behaviour following the network's most significant tokenomics reform to date. FIP.16, titled "Restructure FLR Tokenomics for Long-Term Network Sustainability," was approved by governance with voting concluding on April 24, 2026. Rollout is phased, with some parameters taking effect shortly after the vote while others require a network hard fork and coordinated releases.
Validator staking rewarded five times more than delegation The Flare Network implemented the FIP.16 protocol update starting with the July 20 reward epoch. The key change reweights payouts, making $FLR staking on the P-Chain worth five times the rewards of C-Chain delegation. This is a fundamental reset designed to incentivise users to lock tokens for network security rather than delegate for liquidity, and it directly targets tokenomics by aiming to reduce liquid supply and structural sell pressure from delegation rewards.
Beyond the staking reweight, FIP.16 introduced broader economic changes. The upgrade cut annual inflation from 5% to 3% and increased the base gas fee 20 times to accelerate the burn rate, directly linking $FLR's value to network usage. FIP.16 also introduces MEV capture and routes a broader set of network revenues through FIRE.
$FLR is trading around $0.0062, up approximately 5% on the day. By making staking more lucrative, the protocol encourages stronger network security and long-term holder alignment.
Sources:
Flare Developer Hub: FLR Token and FIP.16 Overview
Flare Network: From Activity to Value Accrual
Flare Network: Beyond FlareDrops
Sentora po několikaměsíční due diligence schválila FXRP jako způsobilý kolaterál. Pro Flare je to podle Hugha Philiona důležitý signál důvěry v XRP jako kolaterál v DeFi.
Hugo Philion, co-founder and CEO of Flare, said Sentora, a major DeFi resource and risk management platform, approved FXRP as an eligible collateral asset.
Philion made the comments in a recent interview with Paul Barron on the Paul Barron Network, where they discussed XRP’s growing use in decentralized finance.
During the interview, Paul Barron noted that XRP ranks around fourth among cryptocurrencies by market capitalization, with a market value of about $70 billion.
However, he pointed out that XRP does not yet have the same role in on-chain lending as Ethereum. According to him, wrapped Bitcoin and stablecoins have already shown how crypto assets can be used as collateral in DeFi.
Barron said this could allow large amounts of idle capital to become more useful. He then asked Philion whether this new use case could help expand XRP’s market base.
Flare Expands XRP Lending Philion said he believes the development should help expand XRP’s market base. He also said Flare has played a leading role in making XRP a collateral asset and has so far seen strong results in this area.
According to Philion, this progress benefits the XRP community, Ripple, and investors who see XRP as an asset worth holding.
The Flare CEO then highlighted the difference between Flare’s current lending setup and the upcoming XLS-66 protocol.
He explained that Flare’s integration with Morpho on mainnet and Sentora allows users to borrow RLUSD, with other stablecoins potentially added later, using XRP as collateral.
With this, a user could provide $1.50 worth of XRP and borrow $1. He said this gives XRP holders a direct way to put their tokens into a lending market and borrow against them.
However, XLS-66 works differently because it focuses on uncollateralized lending. This method would allow borrowers to arrange their credit rating or payment guarantee off-chain.
As a result, Philion said XLS-66 does not provide the same function as Flare’s system, where users can use XRP to borrow dollars. He added that Flare plans to keep expanding this market and develop more products around XRP as collateral.
FXRP Addresses Bridge Risks Barron then called attention to the risks involved in using other crypto assets in DeFi. According to him, there are extra risks that can come from wrapping agents and F-assets, as well as the bridge risks involved when assets move between networks. He asked Philion what Flare had done to reduce these risks.
Responding, Philion said scams remain one of the biggest risks users face, especially on Twitter (now X), where fake accounts often pretend to represent Flare and other projects. As for the bridge itself, he said Flare has tested it extensively and designed its structure with security in mind.
Philion then mentioned Sentora’s review as an important sign of confidence. He said Sentora spent several months carrying out due diligence on FXRP, while many of its partner exchanges also reviewed the asset.
The reviews covered how the bridge operates and how FXRP moves onto Ethereum. After completing those checks, Sentora approved FXRP as an eligible collateral asset.
Philion noted that the decision was a major sign of confidence because Sentora ranks among the largest curators in the DeFi sector.
Because losses could directly affect its business, the Flare co-founder said Sentora has a strong reason to examine the risks carefully before supporting an asset. As a result, he saw its approval of FXRP as an important vote of confidence.
FXRP Expands Across DeFi FXRP launched on the Flare mainnet on September 24, 2025, as the first asset under the FAssets protocol. Flare initially capped minting at 5 million tokens during the first week, which filled almost immediately.
By February 2026, FXRP’s circulating supply had passed 100 million tokens, worth about $140.10 million at the time. Users had minted the tokens through 38,030 transactions, with more than 60% of the supply staked in Flare-native DeFi protocols.
Flare also launched the first XRP spot market on Hyperliquid in January 2026 through an FXRP/USDH pair. FXRP later expanded to the Yellow Network and Coinbase’s Base chain. At press time, Flare held nearly $150 million worth of XRP tokens, while $58 million remained staked on Firelight.
FXRP Current Stats DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Derive nově přijímá Flare’s FXRP jako kolaterál pro XRP opce a perpetual futures. Obchodníci mohou obchodovat přímo ze svých peněženek, přičemž opce se vypořádávají v USDC.
In brief Derive now accepts Flare’s FXRP as collateral for XRP options and perpetual futures. Users can trade through their own wallets without relying on a centralized exchange. Options settle in USDC, exposing traders to margin and liquidation risks. XRP holders can now use Flare’s FXRP as collateral to trade options and perpetual futures on decentralized exchange Derive, Flare announced on Thursday.
According to Flare, users mint FXRP, a token representing XRP on the Flare blockchain, through its FAssets bridge that converts tokens like Bitcoin, XRP, and Dogecoin into ERC-20 tokens on the Flare network. They can then deposit the token into a Derive Portfolio Margin V2 account and trade derivatives from their own wallets.
Myriad: XRP price next move? Click to make your prediction.Options give traders the right to buy or sell an asset at a set price. Perpetual futures allow them to bet on price movements without an expiration date. XRP holders can use the products to hedge against losses, earn premiums by selling options, or speculate on the token’s price.
“Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure,” founder and CEO of Derive, Nick Forster, said in a statement. “FXRP gives one of crypto’s largest holder bases a credible path onchain, and adding Derive’s options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.”
Derive’s XRP options settle in USDC rather than XRP. If an option expires at a profit, Derive pays the difference in the dollar-pegged stablecoin while the FXRP remains posted as collateral. Options sellers must hold enough USDC to cover settlement and maintain the required margin or risk liquidation.
The integration broadens FXRP’s use in decentralized finance. Earlier this month, FXRP was approved as collateral in DeFi risk management firm Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho. That service allows XRP holders to bridge FXRP to Ethereum and borrow Ripple’s RLUSD stablecoin without selling their XRP.
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Flare Data Connector umožňuje smart kontraktům ověřovat externí data z jiných sítí přímo on-chain bez spoléhání na bridge. Flare už nasadil FXRP a za prvních sedm měsíců bylo vyraženo přes 155 milionů FXRP.
The problem with cross-chain dataMost blockchains have no native way to verify what is happening on other networks. A smart contract on one chain cannot confirm whether a payment settled on another, which is why cross-chain activity has long depended on bridges and trusted intermediaries. @FlareNetworks takes a different approach, using its Flare Data Connector (FDC) to bring verified external data directly on-chain.
According to Flare's developer documentation, the FDC is an enshrined oracle designed to validate external data for Flare's EVM state, allowing smart contracts to consume attested information without relying on users for data integrity.
How the Data Connector worksThe process starts when a developer submits an attestation request for an external event. That could be a payment on the XRP Ledger, a $BTC or $DOGE transaction, or data returned by a Web2 API. Flare's independent data providers each verify the event independently, and their responses are combined into a consensus result.
Once consensus is reached, the verified data is stored as a Merkle root on-chain. Attestation requires more than 50% signature weight from data providers, ensuring decentralized consensus, and only the Merkle root is stored on-chain to minimize costs. Any smart contract can then consume this proof, turning external events into on-chain inputs without trusting whoever supplied the original data.
The FDC and Flare's Time Series Oracle (FTSO) represent what Flare describes as its most advanced and fully decentralized data protocols, empowering the network to acquire price, Web2, and blockchain data quickly and securely.
This architecture also supports a broader roadmap. In conjunction with the FTSO and FDC, applications can be built on Flare that harness price data, process data from other blockchains or Web2 sources, and execute transactions across Flare's connected chains.
FAssets: putting the Data Connector to workThe most concrete application of this infrastructure is FAssets, Flare's system for bringing non-smart-contract tokens into DeFi. With FAssets, assets that were not built for smart contracts can be used in programmable markets: trading, lending, vaults, staking, and cross-chain financial applications.
Flare has launched FXRP, a wrapped version of XRP that can be used in DeFi applications, and is the first live deployment of the FAssets system, which turns non-smart contract tokens like XRP into overcollateralized assets that can interact with DeFi protocols. Flare plans to expand FAssets to $BTC and $DOGE, bringing more non-smart-contract assets into its ecosystem.
Within its first seven months, more than 155 million FXRP had been minted, with most of that supply actively deployed across DeFi.
The Data Connector sits at the centre of this process. The FDC verifies the underlying transaction, and the equivalent FAssets are then minted as ERC-20 tokens on Flare. The result is a system where cross-chain applications are built on verified events rather than bridges alone.
Sources:
Flare Developer Hub: Flare Data Connector Overview
Flare Network: FAssets
The Block: Flare Network launches FXRP to let XRP be used in DeFi apps
Flare zpřístupnil držitelům XRP RLUSD likviditu na hlavní síti Ethereum bez nutnosti prodeje XRP. Integrace FXRP jako kolaterálu v institucionálním RLUSD vaultu Sentora na Morpho otevřela první XRP reprezentaci schválenou jako kolaterál v institucionálně kurátorovaném lending vaultu na Ethereum mainnet.
XRP holders can now access Ripple USD (RLUSD) liquidity on Ethereum without selling their XRP.
The option became available after Flare integrated FXRP as collateral in Sentora’s institutional RLUSD vault on Morpho.
The launch creates an isolated FXRP/RLUSD lending market on Morpho Blue. Users can mint FXRP on Flare, bridge it to Ethereum, and borrow RLUSD against their holdings in a permissionless and non-custodial way.
FXRP Becomes First XRP Collateral Asset in Institutional Ethereum Vault According to Flare, FXRP is the first XRP representation approved as collateral in an institutionally curated lending vault on Ethereum mainnet.
The integration gives XRP holders access to Sentora’s RLUSD Main vault, which currently holds around $280 million in deposited RLUSD. It is now the largest institutionally curated RLUSD vault on Ethereum.
The new market allows users to keep exposure to XRP’s price while unlocking liquidity through RLUSD loans. Borrowers retain control of their collateral, with no custodial intermediary or whitelist required.
To use the service initially, users must mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum, deposit it into the FXRP/RLUSD market, and borrow RLUSD within the market’s loan-to-value (LTV) limit.
Flare said a simpler process is in development through Flare Smart Accounts. Once launched, it will allow users to access the service directly from the XRP Ledger.
Expanding XRP’s Role in DeFi Flare said the integration addresses one of the biggest challenges facing XRP decentralized finance (DeFi): access to deep stablecoin liquidity.
The company noted that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency.
Flare highlighted the network’s growth after the launch of USDT0 as an example. Following the launch, total value locked (TVL) increased from about $37 million to more than $120 million within two weeks.
By connecting FXRP with institutional RLUSD liquidity, Flare expects borrowing demand on Ethereum to create additional demand for FXRP minted through the FAssets protocol.
Institutional Review Clears FXRP as Collateral Before approving FXRP as collateral, Sentora conducted a risk assessment that examined the asset’s behavior, oracle reliability, and available liquidity for liquidations and withdrawals.
Flare CEO Hugo Philion said the integration marks an important step for XRP’s utility beyond payments.
“XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure. FXRP closed part of it by making XRP programmable. This closes another part. XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet.”
Jesus Rodriguez, Co-Founder and CTO-CPO of Sentora, said enabling FXRP as collateral expands XRP’s role in decentralized credit markets. In his words:
“By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”
More XRP DeFi Integrations Ahead Meanwhile, Flare said the current launch is the first step toward broader XRP-backed lending options. Future updates include direct FXRP minting from the XRP Ledger to Ethereum, removing the need for a separate bridging process.
Flare Smart Accounts are also expected to allow XRP holders to borrow RLUSD directly from the XRP Ledger without using Ethereum interfaces.
The company added that Sentora’s approval could encourage other Morpho vault curators to adopt FXRP as collateral. This could increase the amount of stablecoin liquidity available to XRP holders across decentralized finance.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Flare získal povolení použít $FXRP jako kolaterál pro institucionální úvěry v Morpho-based $RLUSD Main vaultu na Sentora. Jde o první schválení reprezentace XRP jako kolaterálu v takovém vaultu.
Flare, a popular Ethereum-based L1 chain for trusted decentralized data access, has recently obtained an exclusive authorization for its wrapped $XRP, $FXRP. In this respect, Flare has gained the approval to use $FXRP as a collateral asset for institutional lending in the Morpho-based $RLUSD Main vault of the DeFi lending infrastructure provider, Sentora.
As per Flare’s official press release, the development lets users borrow $RLUSD without losing $XRP exposure by leveraging $FXRP in the form of collateral. The move denotes the 1st approval for an $XRP representation in the form of collateral within an institutionally curated vault for lending services.
$FXRP Broadens $XRP Use Cases in Ethereum-Based DeFi The authorization for Flare’s $FXRP for $RLUSD lending collateral in Sentora’s Morpho-based RLUSD Main vault is set to bolster the role of $XRP in the DeFi sector. The respective vault is effectively managing almost $280M in the form of deposited $RLUSD, becoming the biggest vault for institutionally curated $RLUSD on Ethereum.
The new $FXRP/$RLUSD market reportedly runs on Morpho Blue, which is a permissionless lending entity that lets consumers create separate lending markets. With the FAssets system of Flare, those holding $XRP can seamlessly mint $FXRP.
Additionally, they can also bridge the minted $FXRP to Ethereum, then deposit it in the form of collateral, and ultimately borrow $RLUSD tokens without the liquidation of $XRP in their holdings. The respective mechanism provides investors with consistent exposure to $XRP’s price while unveiling stablecoin liquidity for use across diverse DeFi applications.
Authorization Paves Way for Further DeFi Integration of $FXRP Hugo Philion, the CEO and Co-founder of Flare, said, “XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.” So, this underscores another key step toward $XRP’s inclusion into mainstream DeFi.
Additionally, Jesus Rodriguez, the CTO-CPO and Co-founder of Sentora, mentioned, “By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”
According to Flare, the lending market is set to initially go live with a relatively conservative supply for risk management during the 1st stages. Simultaneously, $FXRP will stay under consistent monitoring via the institutional benchmarks set for the other authorized collateral assets. Overall, by making $FXRP a key $RLUSD collateral for institutions, the launch could push Morpho curators, DeFi applications, exchanges, and wallets to integrate it into additional lending markets.
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Falešný stakingový web vydávající se za Flare Network a FXRP během osmi dnů odčerpal 3,4 milionu XRP od 71 investorů, uvedla policie v Soulu. Škoda činí 12,3 miliardy wonů (8,5 milionu USD).
In brief A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police said. Police say the operators impersonated Flare Network and FXRP, and seeded blogs, articles and YouTube with false information. Investigators traced 27.3 billion won ($18.8 million) through wallets linked to the group and froze 17.3 billion won of it. A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police say. Two men, both 29, have been referred to prosecutors on aggravated fraud charges, local outlet Chosun reported Thursday.
According to police, the site, Fxrpntwork.com, impersonated Flare Network and its FXRP token, both legitimate projects, and promised monthly returns of 1.5% to 1.8% with principal guaranteed. Investors were allegedly directed to move XRP off domestic exchanges, through overseas venues, and into wallets the group controlled, before the site shut down on October 23 and the operators disappeared.
A fake evidence basePolice said the group planted false information on portal blogs, online news articles and Wikipedia, and produced YouTube videos featuring a paid stand-in, so anyone researching the project found what looked like independent corroboration. The scheme followed FXRP's actual launch the month before.
The stand-in, 34, has been charged with fraud. Police put average losses at 173 million won ($119,000) a victim across the week the site was live.
Police froze 17.3 billion won of assets across overseas exchanges as soon as they detected the scheme. Another 10 billion won moved during the investigation and is unaccounted for, they said. Together that is the 27.3 billion won ($18.8 million) investigators traced through wallets linked to the group, well above the 12.3 billion won confirmed lost by the 71 known victims, which police say points to more.
An overseas exchange tipped off police last October about a surge in staking fraud. Investigators executed 54 search and seizure warrants, arrested one suspect at a hideout after he returned from abroad, and picked up the others in sequence. A fourth man, also 29, is overseas under an Interpol Red Notice. None of the four has been tried, and police have not made their identities public.
South Korean police have brought a run of crypto cases this year, including June's charges against 23 people over laundering $11.1 million in USDT for a Cambodia-based phishing ring. Investigators said they would treat crypto fraud with "zero tolerance," and urged investors to check official sources before sending funds.
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Flare ve verzi Smart Accounts 1.3 zjednodušuje držitelům XRP přístup do DeFi jediným podpisem v peněžence. Zároveň odpadá nutnost samostatné peněženky, bridge i gas tokenů.
The update makes DeFi access easier by reducing the approval process to a single wallet signature.
Flare has introduced Smart Accounts version 1.3 to simplify how XRP holders access decentralized finance (DeFi) without changing their existing wallet. The update also removes the need to create separate wallets, manually bridge assets, or manage gas tokens before using DeFi services.
According to a press release sent to CryptoPotato, users now need only a single wallet signature to access DeFi. Previously, the process required two separate approvals.
How Smart Accounts Version 1.3 Works Under the new version, users approve a single transaction from their XRP Ledger wallet. The system then converts their XRP into FXRP and automatically deposits it into a selected yield vault.
The Flare Data Connector verifies the XRP Ledger transaction before a smart contract completes the remaining steps. Flare said the original XRP remains locked on the XRP Ledger at a one-to-one ratio throughout the process.
This setup allows users to retain control of their assets while removing the need for manual bridging or obtaining gas tokens on another blockchain. The simplified process comes as FXRP activity across decentralized finance platforms continues to expand.
Since February, the amount of FXRP deployed across DeFi applications has grown by nearly 75%, rising from 82 million to 144 million. Flare also reported that more than 40 million XRP is currently earning through Smart Accounts across nearly 24,000 accounts.
New Vaults and Broader Wallet Integration Commenting on the update, Chief Product Officer Filip Koprivec said millions of XRP holders had wanted access to DeFi, but the experience had been too complex. He said version 1.3 lets users move from XRP to yield with a single wallet signature while remaining fully non-custodial.
You may also like: Ripple (XRP) News and Price Update: July 27 Ripple (XRP) ETF Inflows Set Another Record, but One Problem Remains Do People Interested in XRP Actually Care About Ripple? The version also expands the available yield options with two vaults offering different approaches. Users can continue using the Monarq vault or choose the new Clearstar Flare XRP Yield Vault, which uses on-chain lending and liquidity strategies.
According to the company, the Clearstar vault distributes FXRP across protocols including Avant and Euler while keeping all positions publicly visible. Flare added that Clearstar has previously managed more than 33 million FXRP through earlier deployments.
The update also expands wallet support to Ledger, Xaman, Joey Wallet, WalletConnect, including Bifrost, and D’CENT. Joey Wallet has integrated the Smart Accounts interface directly into its application, allowing users to complete the process without leaving the wallet.
CEO Flare Networks Hugo Philion chce rozšířit technologii FAssets i na Bitcoin přes zabalený token FBTC. Cílem je přitáhnout kapitál do DeFi s využitím Flare Confidential Compute.
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Flare Networks CEO Hugo Philion has announced plans to scale FAssets technology to Bitcoin through the wrapped FBTC token. Against the backdrop of a prolonged industry slowdown, which Philion described as "the market sucks, but not forever," the project is attempting to turn Flare into a programmable layer for the isolated assets.
Last Sunday, Flare announced a major six-month roadmap with the XRP Ledger (XRPL). Right now, the FAssets system allows users to convert coins into FXRP tokens at a 1:1 ratio, giving holders access to staking, lending and liquidity pools.
FXRP issuance has already exceeded 150 million tokens and, over the next six months, Flare aims to attract up to 5 billion XRP, or around 5% of the total supply.
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Philion intends to bring the same model to Bitcoin through FBTC. The main argument for attracting large capital will be confidential computing technology — Flare Confidential Compute (FCC), based on trusted execution environments (TEEs).
Privacy for Bitcoin whalesFCC addresses a fundamental problem in DeFi — the complete transparency of blockchains, which discourages institutional investors. The technology will allow funds to execute large transactions and take out loans while keeping commercial data hidden from competitors.
Although Flare is fully funded and is not at risk of shutting down, Philion is not promising an immediate surge in prices.
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Though the next six months will be devoted exclusively to deploying the code, large players will need more time to audit the bridges, while lending protocols will require a massive inflow of stablecoins such as USDT and USDC.
Meanwhile, growing cross-chain activity already keeps network TVL above $200 million and directly feeds protocol revenue into FIRE, an updated value-accrual mechanism that automatically buys back and burns native FLR tokens to drive long-term ecosystem scarcity.
Flare spouští šest měsíců integrací pro XRPFi a má z XRP Ledgeru udělat programovatelnou vrstvu. FXRP už přesáhl 150 milionů tokenů, cíl je až 5 miliard XRP.
Cover image via depositphotos.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Flare Networks co-founder and CEO Hugo Philion has announced the start of a six-month phase of large-scale integration that is expected to radically transform the XRP-based decentralized finance ecosystem, known as XRPFi.
The first technological updates will begin rolling out within the next two weeks, turning Flare into a fully programmable layer for the historically isolated XRP Ledger (XRPL).
Because XRPL was originally designed exclusively for fast payments and does not support smart contracts, billions of dollars worth of XRP have remained in wallets for years without any practical utility.
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Flare is attempting to solve this problem through its FAssets system. Users can convert their coins into the wrapped FXRP token at a 1:1 ratio via hot wallets, gaining access to staking, liquidity pools, and on-chain lending.
How Flare plans to attract 5 billion XRP over the next six monthsInvestors have embraced the initiative, and FXRP issuance has already exceeded 150 million tokens. In the long term, Philion expects the protocol to attract up to 5 billion XRP, representing approximately 5% of the coin's total supply and potentially creating a real shortage of the asset on exchanges.
At the same time, the team is addressing the main problem of traditional DeFi: complete transparency, which discourages large capital holders.
Starting in the next couple of weeks the next 6 months are going to be transformative for XRPFi through Flare.
— Hugo Philion (@HugoPhilion) July 26, 2026 The upcoming Confidential Compute technology, based on trusted execution environments, or TEEs, will allow institutions to execute large trades and take out loans while keeping commercially sensitive information hidden from competitors, with transactions remaining fully and mathematically verifiable on the main network.
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However, whether the XRP price can justify retail investors' expectations remains an open question. Contrary to hopes of an immediate price surge, the current news backdrop requires realism.
The six-month period outlined by Philion is a window for deploying the code, while institutional players will require additional months to conduct security audits of the new bridges.
In addition, the ecosystem critically needs a large inflow of liquidity in stablecoins such as USDT and USDC before lending protocols can become fully operational, something Flare's management has directly acknowledged during private sessions. Until these infrastructure challenges are resolved, XRP's market price will continue to follow broader macroeconomic trends and Bitcoin's movements, temporarily ignoring local successes achieved by developers.
Flare zvyšuje limit vkladu do Monarq XRP Yield Vault z 500 000 FXRP na 7,5 milionu FXRP, tedy 15násobně. Krok přichází po silné rané poptávce po XRP a nové integraci s D’CENT Wallet.
Key Facts Flare is raising the deposit cap on the Monarq XRP Yield Vault (MXRPY) from 500,000 FXRP to 7.5 million FXRP, a 15x increase. The cap raise follows strong early demand since MXRPY’s launch on 15 May 2026 by Monarq Asset Management, Flare and Upshift. MXRPY is a managed multi-strategy vault deploying FXRP across options trading, basis and funding rate arbitrage, and on-chain XRPFi strategies, targeting 3–4% APY. Monarq, the vault’s strategy manager, is a FalconX-majority-owned digital asset manager; the vault runs on Upshift’s institutional vault infrastructure. The cap raise lands days after Flare’s 19 May integration with D’CENT Wallet, which lets XRP holders deposit into MXRPY directly from their hardware wallet using two XRPL signatures via Flare Smart Accounts. Flare is raising the deposit cap on the Monarq XRP Yield Vault (MXRPY) from 500,000 FXRP to 7.5 million FXRP — a 15x increase that reflects unusually strong early demand from XRP holders since the vault launched on 15 May 2026. The expansion comes alongside Flare’s new integration with D’CENT Wallet, which has put the vault within two signatures of hundreds of thousands of hardware wallet users globally.
Why the cap is being raised MXRPY launched with a deliberately conservative initial cap of 500,000 FXRP, giving Monarq Asset Management and infrastructure provider Upshift time to assess flow and validate the vault’s three-strategy execution model in live conditions. The 15x cap raise to 7.5 million FXRP signals that initial demand has comfortably exceeded the launch allocation and that the operating partners are confident the underlying strategy can scale meaningfully.
The expansion also responds to the distribution shift now underway. With XRP holders gaining wallet-native access through D’CENT’s hardware wallet — and additional distribution channels likely to follow through the XRP Alliance — the practical addressable demand for the vault has stepped up sharply over the past two weeks. A 500,000 FXRP cap was never going to be enough to absorb that broader flow.
How MXRPY works MXRPY is a managed multi-strategy yield vault built by Monarq Asset Management on Upshift’s institutional vault infrastructure. It is the first XRP-denominated vault on Flare to combine on-chain DeFi with off-chain execution under a single managed product. Users deposit FXRP — Flare’s trust-minimised representation of XRP — and receive MXRPY receipt tokens representing principal and accrued yield.
Capital is allocated across three return engines: options trading, basis and funding rate arbitrage, and on-chain XRPFi positioning. The target annual yield sits at approximately 3% to 4% APY, with returns distributed over time depending on strategy performance and market conditions. Withdrawals settle on a weekly cycle every Friday, with an option to pay a small fee for instant redemption.
Monarq — majority-owned by FalconX — runs options and basis strategies as part of its core fund book and applies the same playbook to MXRPY, deciding capital allocation across the three sleeves and executing the off-chain trades directly. Flare provides the FXRP infrastructure and distribution; Upshift provides the vault rails.
“The Clearstar EarnXRP vault showed that there is real demand for XRP-denominated vaults on Flare,” said Ethan Luc, head of growth at Upshift, at the MXRPY launch. “Upshift provided the infrastructure behind that launch, and we’re now expanding the model with Monarq, a second XRP vault with a different strategy profile and a broader set of yield sources.”
D’CENT’s distribution role The cap raise is timed to absorb new flow from the 19 May D’CENT integration. Flare Smart Accounts (FSA) now lets D’CENT users deposit XRP into MXRPY directly from their hardware-secured device using just two XRPL signatures, with no new wallet, no new chain, and no FLR gas token to manage. D’CENT reports more than 330,000 hardware users and 720,000+ app users across the US, Korea, UK, Canada and Japan, with billions of XRP held across the base.
The architecture matters because it removes the friction that previously kept XRP holders out of EVM-based DeFi. FSA treats XRPL as the control layer — the memo field on each XRPL transaction encodes what should happen on Flare, and the Flare Data Connector relays a proof of the transaction to a smart contract proxy assigned to that XRPL address. The user never holds FLR, never manages a new seed phrase, and never signs an EVM transaction. Inside D’CENT, the integration appears as a featured application labelled “Idle XRP; Meet Institutional Yield,” with a direct link to the Monarq vault frontend.
The XRP Alliance context D’CENT is the lead wallet partner in the XRP Alliance, a distribution group convened by D’CENT with Flare, Doppler, Banxa and Squid joining at launch. Flare’s role in the Alliance is the programmable layer for XRP — FAssets handles trust-minimised asset representation, FSA handles chain-abstracted execution, and wallet partners handle native distribution. Together the stack is designed to support both retail flows and institutional strategy deployment.
The cap raise lands inside a broader push by Flare to position itself as the default programmable yield layer for XRPFi. Monarq’s decision to pick Flare as the venue for its first publicly distributed multi-strategy XRP vault — and the speed with which that vault has filled — is the institutional validation Flare has been working toward. The 7.5 million FXRP cap signals that next phase: capital rails capable of absorbing genuinely meaningful XRP volume rather than a launch allocation sized for testing.
$55,000 reward campaign continues Flare and D’CENT’s joint promotional campaign continues to run through to 8 June 2026, with a $55,000 reward pool across three independent quests. Quest 3 — the largest, at $40,000 — rewards users who mint FXRP via Flare Smart Accounts, deposit at least $1,000 USD in XRP value into MXRPY, and maintain the position for 30 days. Eligible users earn $10 in XRP and $10 in FLR per $1,000 USD deposited, with per-user caps of $50 in XRP and $100 in FLR.
Quests 1 and 2 cover D’CENT biometric hardware wallet purchase ($50 in XRP, $10,000 pool) and a minimum 250 XRP holding in a D’CENT wallet ($25 in FLR, $5,000 pool). With the vault cap now 15 times larger, the runway for Quest 3 participation has effectively expanded in line with the new capacity.
FAQ How much is the MXRPY deposit cap being raised?
Flare is raising the deposit cap on the Monarq XRP Yield Vault from 500,000 FXRP to 7.5 million FXRP, a 15x increase. The expansion reflects strong early demand from XRP holders since the vault’s 15 May 2026 launch and the new distribution opened up by Flare’s integration with D’CENT Wallet on 19 May.
What is MXRPY and what yield does it target?
MXRPY is a managed multi-strategy XRP yield vault on Flare, built by Monarq Asset Management on Upshift’s institutional vault infrastructure. It deploys FXRP — Flare’s trust-minimised representation of XRP — across options trading, basis and funding rate arbitrage, and on-chain XRPFi strategies, targeting approximately 3% to 4% APY. Withdrawals settle weekly on Fridays, with an option for fee-based instant redemption.
How can XRP holders access the vault?
XRP holders can access MXRPY through Upshift or directly through D’CENT Wallet via Flare Smart Accounts. The D’CENT integration requires only two XRPL signatures from the hardware device, with FXRP minting and vault deposit handled automatically inside the same flow — no new wallet, no new chain, and no FLR gas token required.
The 7.5 million FXRP cap is the most concrete sign yet that XRPFi on Flare is moving past the proving stage into production-scale capital rails. By raising the ceiling in step with the new distribution from D’CENT, Flare and Monarq are betting that meaningful XRP volume is ready to move on-chain when the experience is simple enough — and the early evidence suggests they are right. This article is informational and does not constitute investment advice.
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Flare podle Hugha Philiona rozšiřuje využití XRP tím, že ho prostřednictvím FXRP propojuje se smart kontrakty a DeFi aplikacemi. FXRP má cirkulující nabídku 155,76 milionu a TVL 186 milionů USD.
Ripple has highlighted the growing utility of XRP, with Flare co-founder and CEO Hugo Philion explaining how Flare is giving XRP holders access to new use cases.
Speaking on Ripple’s Onchain Economy series, Philion said Flare aims to extend the XRP ecosystem by bringing XRP into a smart contract environment. This allows XRP holders to access decentralized finance (DeFi) applications and other blockchain-based services.
Flare Connects XRP to Smart Contracts Philion described Flare as a Layer-1 network focusing on interoperability and data protocols. One of its key products is FXRP, a bridge that connects the XRP Ledger to the Flare network.
Through FXRP, XRP can be used in smart contract applications. This opens the door to DeFi services that are not available directly on the XRP Ledger.
For example, users can use XRP as collateral, borrow against it, access stablecoins, and interact with tokenized assets. These assets can include commodities such as gold and other real-world assets.
According to Philion, these tools allow XRP holders to do more with their tokens instead of simply holding them.
Given this utility, FXRP has gained wide acceptance in the crypto community. The most recent data show that FXRP has a circulating supply of 155.76 million and a TVL of $186 million.
New Yield Opportunities for XRP Holders Philion also highlighted yield generation as an important use case. Through Flare, users can deposit XRP as collateral to borrow stablecoins. They can then deploy those stablecoins into other markets that offer returns.
This approach allows users to earn yield while still maintaining exposure to their XRP holdings.
Flare has also integrated wallet features that let users manage XRP on Flare directly from the XRP Ledger. Philion said this creates a smoother experience between the two networks.
Privacy May Drive Institutional Adoption Looking ahead, Philion discussed a new initiative called Flare Confidential Compute.
The system operates outside the blockchain and uses trusted execution environments to verify confidential computations. It is designed for applications that require significant computing power, such as AI models and continuous risk-monitoring systems.
Philion believes privacy will be an important requirement for institutional participation in blockchain networks. He previously noted that FXRP surpassed 100 million in supply solely through retail, without institutional participation.
Flare Sees Growth Potential in Tokenized Assets Philion said Flare’s technology significantly expands the capabilities of Ripple and the XRP Ledger, especially in the real-world asset (RWA) sector.
He noted that once RWAs are issued on blockchain networks, Flare’s interoperability and smart contract tools can unlock additional functionality for those assets.
According to Philion, this could become a major growth area for both Flare and the XRP ecosystem as demand for blockchain utility continues to increase.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Flare chce zvýšit využití XRP prostřednictvím FXRP a chytrých kontraktů, aby držitelé mohli XRP používat v DeFi jako zástavu a dál z něj generovat výnos.
Flare CEO Hugo Philion recently appeared on the Onchain Economy, where he explained how Flare is working to expand XRP utility through FXRP.
Commenting, XRP community figure Bank suggested that the Flare co-founder had essentially described what he believes is the “endgame” for XRP holders.
Flare’s Plan to Expand XRP Utility In the discussion, Philion said his focus is particularly on increasing XRP’s utility through Flare’s work, further encouraging more developers to build new applications around XRP to bring in value.
He explained that Flare adds smart contract capability to the XRP Ledger and improves interoperability between blockchains. According to him, Flare is a Layer 1 network built mainly around data.
$XRP utility is continuously expanding.
On this episode of Onchain Economy, @HugoPhilion, Co-Founder and CEO of @FlareNetworks, explains how Flare is expanding what’s possible for $XRP through interoperability.
By bringing XRP into a smart contract environment, Flare enables… pic.twitter.com/U8d9JM2t36
— RippleX (@RippleXDev) June 16, 2026
The Flare CEO noted that data infrastructure was the key innovation behind the network, noting that they designed Flare to support better communication and interaction between different systems.
To make this possible, Flare created FXRP, which connects the XRP Ledger to the Flare network. This bridge allows XRP to move into a smart contract environment where it can be used in decentralized applications instead of remaining only on its native ledger.
FXRP and New Uses for XRP in DeFi Philion shared how FXRP generates new financial uses for XRP holders. Notably, once XRP is moved into the Flare ecosystem, users can use it as collateral in lending and borrowing systems. This includes borrowing stablecoins and, in some cases, other assets such as commodities like gold.
He also explained that users can take the borrowed assets and deploy them into other markets that generate yield. This means XRP holders can earn income while still keeping exposure to their original XRP holdings.
Philion added that Flare has also built wallet integrations that let users manage XRP on Flare directly from the XRP Ledger, allowing market participants to move and control assets more smoothly across both systems without giving up custody of their original XRP.
Confidential Computing and Focus on Institutions Speaking further, the Flare CEO also discussed future upgrades, especially Flare Confidential Compute. He called it an extra layer that sits outside the main Flare blockchain but relies on Trusted Execution Environments to confirm what happens inside it.
They designed the system to support heavy applications that blockchains normally struggle with, such as AI models. He also mentioned that Flare is working on continuous AI monitoring and risk tools that can detect problems and respond when needed.
According to him, large institutions will only fully enter decentralized finance if strong privacy features exist. As a result, privacy and secure computation are basic requirements for institutional participation.
Philion further said that Flare increases what Ripple and the XRP Ledger can do with tokenized real-world assets once they are issued on-chain. To him, this creates a major growth area that benefits both Flare and the XRP ecosystem.
FXRP Launch and Early Growth FXRP officially launched on Flare mainnet last September as the first FAsset under version 1.2.
Notably, demand was very strong from the start. The first cap of 5 million FXRP was filled in three hours. After that, the limit was increased to 15 million FXRP, and this second allocation also filled quickly.
Shortly after launch, the Xaman wallet added support for FXRP. This allowed users to mint FXRP directly from XRP Ledger wallets and marked the first stage of Flare’s plan for smoother cross-chain access.
FXRP continued to grow in the months after launch. By late October 2025, about $86.2 million worth of XRP had been bridged after more than 15 million XRP was moved over a single weekend. This pushed Flare to become the largest EVM-based DeFi ecosystem for XRP.
Flare’s liquid staking platform, Firelight, launched its first phase in December 2025. Its initial cap of 25 million FXRP filled quickly, and by around April 2026, staked XRP (stXRP) passed 50 million.
At press time, Flare hosts about 153.8 million XRP worth $180 million in its FXRP ecosystem, with up to $73.43 million staked in Firelight.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Enosys spustil na Flare první stablecoinové půjčky kryté XRP prostřednictvím Liquity V2. Držitelé XRP mohou razit nadkolateralizované stablecoiny navázané na přibližně 1 USD bez prodeje XRP.
Enosys’ Liquity will enable XRP holders to mint overcollateralized stablecoins on Flare, with mechanisms to ensure the assets maintain values close to $1.
The Web3 software development entity Enosys has introduced a new type of stablecoin loan to the interoperability layer-1 network, Flare. These loans are backed by Ripple’s native cryptocurrency, XRP.
According to a press release sent to CryptoPotato, a Collateralized Debt Position (CDP) protocol will power the loans. It will allow XRP holders to mint overcollateralized stablecoins on Flare.
First XRP-backed Stablecoin Loans on Flare Enosys explained that the XRP holdings will back the stablecoins, ensuring they maintain a value close to $1. Through this approach, XRP holders can access the value of their assets without having to sell them.
The CDP protocol to be deployed on Flare is called Liquity. Enosys claims Liquity is one of the most tried and trusted protocols in the decentralized finance (DeFi) sector. Since its launch in 2021, the network has secured billions of dollars in collateral and kept its stablecoin peg amid extreme market conditions.
One mechanism at the core of Liquity’s success is the protocol’s stability pool. The pool allows users to stake their stablecoins for yield coming from mint fees, liquidation rewards, and interests paid on loans. This mechanism makes sure the protocol can cover outstanding debt in the event of liquidation.
Enosys will release a fork of Liquity V2 on Flare, maintaining the features that made the first version trusted. The only changes made will be upgrades like protocol-incentivized liquidity, capital efficiency, and user-set borrowing rates.
Access to DeFi Yield Opportunities The alliance between Enosys and Flare will affect a select Flare-native tokens for now. They include Flare XRP (FXRP) and Wrapped Flare (wFLR). The companies intend to expand the capabilities to staked XRP (stXRP) soon, allowing Ripple holders to put their assets to work.
You may also like: XRP’s Price Could Explode to $8, But This One Zone Is Holding It Back 5 Reasons Why Bitcoin Just Crashed Below $63K as Liquidations Top $500M XRP’s Biggest Warning Sign Is Still Flashing Despite Easing Whale Activity Users can lock their FXRP on Flare and mint a stablecoin, which can provide liquidity and access to DeFi yield opportunities. While borrowers can set the annual percentage rate (APR) they’re willing to pay, lower rates come with a price. If the stablecoin falls below its $1 peg, loans with the lowest interest rates will be redeemed first.
“This is just the beginning. By bringing a proven model like Liquity V2 to Flare, we’re laying the foundation for stable, decentralized liquidity powered by XRP and enhanced by liquid staking,” the Enosys team stated.
Meanwhile, Enosys Loans will also be utilizing data from the Flare Time Series Oracle (FTSO) to implement decentralized collateral pricing.
During the previous month, the value of Flare’s native currency, FLR, has increased by more than 165%. By including XRP as an FAsset on its Songbird testnet, the Flare network will be able to include smart functionality. An airdrop reward pool consisting of $260,000 in rFLR is being offered in order to encourage the adoption of Songbird. In preparation for the launch of the mainnet, the blockchain network Flare, which was designed specifically for data, has added XRP to the FAssets on its canary network Songbird.
FAssets is a new development by Flare that offers smart-contract capabilities for blockchains like XRP, BTC, and DOGE, which do not support smart contracts. By including XRP as an FAsset on its Songbird testnet, the Flare network will be able to include smart functionality, which will enable it to demonstrate greater DeFi capabilities.
I want Flare to provide a similar service to XRP that Babylon provides for Bitcoin. I will personally pay a grant of $500k in FLR to a group that builds a fully fledged staking service for XRP on Flare (through FXRP) using Flare’s FDC to slash stake. The purpose would be to allow…
— Hugo Philion ☀️ (@HugoPhilion) December 2, 2024 The innovative bridging method that will be used for this integration is now being tested on Songbird prior to the functionality being rolled out on Flare mainnet. Once it is released, FAssets will make it possible to create robust apps that provide improved capabilities to standard crypto assets. This will be a new door that will open.
The Flare team is of the opinion that FAssets have the potential to revolutionize the way that crypto assets such as XRP and BTC are used within the ecosystem of decentralized finance. In order to offer these tokens with the same usefulness as native smart-contract assets, Flare intends to create a decentralized system that will allow for the minting, trading, and redemption of bridged assets.
An airdrop reward pool consisting of $260,000 in rFLR is being offered by the team in order to encourage the adoption of Songbird. This reward pool will serve as an incentive for agents and collateral pool participants. It is possible to get these rewards by putting the minting, redeeming, and trading processes to the test.
Audits are now being performed on these integrations, and the findings are anticipated to be available by the middle of December.
Whopping 165% increase in Flare during the previous month During the previous month, the value of Flare’s native currency, FLR, has increased by more than 165% in anticipation of the debut of FAsset. It is the 79th biggest cryptocurrency asset, with a market valuation of $1.72 billion and $3.35 of FDV.
As of right now, the price of FLR is hovering around to the $0.033 level, and the 24 hour trading volume for the cryptocurrency is $45.16 million, as per data from Coinmarketcap. FLR reached its all-time high price of $0.0797 on January 10, 2023, marking the day it was driven by bulls.
In the event that the launch of FAssets and the dynamics of the market are favorable, FLR may come back to its prior price gains and come close to breaking to a new all-time high rate. It is anticipated that the next Altseason will bring about a significant increase in the value of a variety of low and mid cap altcoins, including FLR.
An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.
Flare oznámil integraci s TrustSwap a Team Finance, která má vývojářům usnadnit správu tokenů a získávání kapitálu. Prvním projektem bude SparkDEX prostřednictvím IDO tokenu SPRK.
The blockchain for data announced a key partnership with leading launchpad TrustSwap and management platform Team Finance.
Flare, the popular blockchain aimed at improving data efficiency, is announcing an integration with TrustSwap – a leading launchpad, as well as Team Finance, which is a token management platform.
Big Names In The Industry Join Forces According to a press release shared with CryptoPotato, the partnership will bootstrap a new chapter for developers on Flare. They will be able to raise capital, manage token logistics, and even reach new communities through the fundrasing tools provided by TrustSwap.
The first project to launch from the alliance will be the native decentralized exchange (DEX) and DeFi platform on Flare – SparkDEX. This will happen through its anticipated SPRK token IDO (Initial DEX Offering).
SPRK will serve as both the governance and utility token for SparkDEX. The decentralized exchange has seen steady growth this year, climbing from a Total Value Locked (TVL) of $25 million at the beginning of May to over $100M in TVL at the time of writing, as per data from DefiLlama.
Max Luck, the Head of Ecosystem at Flare, had the following to say about the merger:
“We’re thrilled to bring TrustSwap and Team Finance into the Flare ecosystem. By partnering with a trusted platform that has successfully supported over 100 public launches and raised more than $100 million, we’re giving builders and users on Flare access to one of the most reputable token launch infrastructures in Web3.”
The Flare blockchain is a full-stack Layer-1 (L1) solution designed for data-intensive use cases. It is currently the only EVM-compatible chain optimized for creating intelligent decentralized applications (DApps) that integrate DeFi, AI, and traditional finance (TradFi).
The network is supported by two protocols: the State Connector, which enables the use of external blockchain data, and the Flare Time Series Oracle (FTSO), which serves as a source of reliable off-chain data for use on the network.
You may also like: Important Ripple (XRP) Deadline Concerning Many Users Sahara AI Denies Security Issues as Token Price Drops Over 60% DeFi Users Warned to Revoke Approvals Before Anthropic’s Mythos AI Launches TrustSwap is a launchpad that provides DeFi tools for token holders and businesses to buy, trade, create, and secure crypto assets with confidence, boasting the aforementioned track record. At the time of printing, over 30,000 projects are currently utilizing the protocol, and it is now live on the Flare blockchain.
Team Finance is the launch platform’s token management suite, already embedded into SparkDEX, providing a stable backend for tokens on Flare. They also offer self-service minting of tokens, liquidity/token locks, vesting schedules, and multisending for token distribution.
The three-company conglomerate will also receive support from The Crypto App, a known portfolio tracker and news hub for Web3.
Alongside it, liquidity will be provided by the Amplifi Fund, with automated management to support DEX trading volume for future token launches.
