Flare outlined its XRP DeFi strategy on Korean TV at Korea Blockchain Week, detailing how FXRP works, how collateral protects users, and its Korean partnerships.
Flare used an appearance on South Korean television to pitch its approach to bringing XRP into decentralised finance (DeFi). Speaking on Korea Economic TV's Crypto Labs at Korea Blockchain Week, @FlareNetworks APAC lead Kyle Kim (@Banktheworld) described Flare as a blockchain for data.
How FXRP worksKim said Flare checks outside information, such as prices or transactions on other chains, and makes it available to smart contracts. Holders of $XRP can convert their tokens into FXRP on Flare to lend, borrow against, or earn yield, and can swap back whenever they choose.
FXRP is issued through Flare's FAssets system. FXRP was the first live deployment of the system, which turns tokens that lack smart contract support, such as XRP, into overcollateralised assets that can interact with DeFi protocols. At launch, Flare's chief product officer Filip Koprivec told The Block that FXRP is designed to be non-custodial and over-collateralised, with onchain, protocol-level verification rather than reliance on a single custodian.
Kim said approved operators hold the XRP behind FXRP. Each must lock up collateral worth more than the XRP it holds, which is meant to protect users if something goes wrong. DefiLlama's research describes these operators as agents, independent operators who post collateral worth more than the XRP they back, partly in stablecoins and partly in FLR. If the collateral's value falls below the required level, the agent's position can be liquidated.
Growing usage and Korean partnershipsDemand for the token has built since launch. A DefiLlama report published on October 21 counts about 129 million of the 145 million FXRP in circulation deployed across protocols, close to 90% of supply. The same report notes the base is still small: 145 million FXRP equals roughly 0.23% of circulating XRP. Lending is the biggest use. Most of the lending demand comes from holders who use FXRP as collateral and borrow against it while keeping their XRP.
In Korea, Flare is working with hardware wallet maker D'CENT. In May, D'CENT's maker IoTrust announced a three-week campaign with the Flare network , and said D'CENT is an official partner of Flare Smart Accounts , which removes the need for users to buy extra gas tokens.
Flare is also running a pilot finance product with weather data firm K-Weather (Kweather). The two companies signed a letter of intent to pilot the integration of meteorological data onchain. The data will be delivered through Flare's Time Series Oracle and could support products such as parametric climate insurance. CoinDesk's Omkar Godbole cautioned that the initiative is still very early, and a letter of intent is not a working product.
The appearance shows Flare targeting the Korean market with a dual message: XRP holders can put idle tokens to work, and data-driven products can extend beyond price feeds.
Sources:
DefiLlama Research: How Flare uses data to expand what capital can doCrypto Briefing: Kweather taps Flare to develop weather finance productsGlobeNewswire via Manila Times: D'CENT launches Flare campaign
Flare (FLR) holders have staked 23.1 billion tokens, or 49.2% of FLR taking part in the network, after the FIP.16 tokenomics overhaul gave staking more weight than delegation.
Holders have staked 23.1 billion $FLR on @FlareNetworks, or 49.2% of the FLR taking part in the network. The remainder is delegated.
FIP.16 shifted weight toward stakingFlare governance voters approved the FIP.16 tokenomics overhaul in April. According to the official proposal page, the vote passed on April 24, 2026, with 98.06% support against a 50% requirement.
The proposal changed how staking and delegation are weighted.
The Flare Foundation, which authored the proposal, said the changes are designed to
FIP.16 also covered inflation and burns.
Staked FLR has climbed since JulyStaked tokens stood near 16 billion in July.
The latest figure of 23.1 billion FLR represents a further increase from those levels and puts staking just under half of the participating FLR.
The distinction matters for network security. Staked FLR is locked with a validator, while delegated FLR can leave at any time. With staked tokens now carrying five times the weight of delegated ones, a larger staked share gives the network a more committed base of participants.
For context, staking still represents a minority of total supply.
Sources:
FIP.16: Restructure FLR Tokenomics for Long-Term Network Sustainability (Flare)Flare tokenomics revamp drives staking to 21.5B FLR (crypto.news)Flare FIRE Revenue Doubles as FLR Staking Jumps 82% (The Crypto Times)
The XRP lending race is already underway, even though the XRP Ledger’s native lending feature hasn’t launched. Ripple CTO Emeritus David Schwartz and Flare CEO Hugo Philion have sparked a friendly debate over just how big the opportunity could become.
The disagreement highlights a bigger question: should developers wait for native tools, or build lending infrastructure around the ledger now?
XRP Lending Could Unlock A Bigger Financial MarketNative XRP Ledger lending would let users lend and borrow assets directly on the blockchain. Validators are still voting on XLS-66, the proposal behind the feature, while XRPL Commons says lending is about to go live and has promoted a New York hackathon with lending and borrowing tracks.
source: xSchwartz says nobody has built anything with the feature yet, leaving early developers plenty of room. He’s long viewed extending credit on the XRP Ledger as important, arguing lending is one of the biggest needs in any financial system.
Flare Wants To Build Before XRPL UpgradesPhilion praised Schwartz’s intelligence but argued he may underestimate lending’s potential. He also pointed to outside infrastructure that can connect to the XRP Ledger.
Flare plans to deploy lending logic on its own side rather than wait for major XRPL upgrades. Its approach combines Protocol Managed Wallets with the Flare Confidential Compute stack, aiming to deliver near-full smart-contract capabilities.
Native Wallet Access Could Avoid Bridge RisksThe proposed setup could let holders lend coins from native XRPL wallets without relying on traditional cross-chain bridges. That would keep assets closer to their native environment, while fees would flow to the Flare ecosystem.
For the XRP lending market, the competition is taking shape before native tools arrive. Schwartz sees room for developers to use the ledger’s existing capabilities; Philion is betting external infrastructure can expand what’s possible. The real test will be whether either approach turns the opportunity into usable lending products.
Story Ends Here
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Ripple CTO David Schwartz is underestimating the true potential of lending on the XRP Ledger, and the Flare Networks ecosystem is ready to prove it in practice. Flare CEO Hugo Philion made this ambitious but friendly claim.
In his view, one of XRP's chief architects is overlooking what many users have also missed - the scale of external infrastructure that can be integrated into Ripple's network.
Philion explains that while the XRPL's native lending protocol, XLS-66, is stalled at the validator voting stage, his team has already built a workaround. Flare is betting that, with Protocol Managed Wallets and its Flare Confidential Compute stack, any application can be built with whatever logic you want.
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@JoelKatz thinks that lending on the XRPL will be big. As incredibly bright as David is - I’d wager that even he is underestimating quite how big it can be! ;)
— Hugo Philion (@HugoPhilion) October 7, 2026 In Philion's view, these two components will come as close as possible to giving the XRPL full smart contract capabilities.
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As a result, any add-on will function as if it were native to the XRPL. Asset holders will be able to lend coins directly from their native wallets, completely avoiding the risks of cross-chain bridges. But the executive's economic incentive is clear: as always, all fees flow into FLARE.
How to put XRP to work right now: Flare's approachAs evidence, Philion points to a lending market that Flare has already deployed on external platforms using FXRP.
While Ripple's native XLS-66 model, designed for off-chain underwriting by Clearpool and Cicada, is still awaiting approval, investors have already borrowed $7.2 million in the new RLUSD stablecoin through Flare's infrastructure, using 10.8 million wrapped XRP as collateral. This highly concentrated sector, where just three addresses currently hold 93% of the debt in Morpho pools and Sentora provides liquidity, despite RLUSD's total supply of $2.4 billion, clearly demonstrates the potential demand.
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Summing up his position, Hugo Philion confirmed that his company does have plans for lending on the XRPL.
Rather than wait for major ledger upgrades from Ripple, Flare intends to deploy programmable logic on its own side, thereby channeling new financial flows into its own ecosystem.
On October 6, 2026, Flare announced that Firelight Protocol was live with aggregate staked positions capped at $115 million in $XRP. The launch puts staked FXRP behind cover for Sentora’s USD Protected Vault and Protected RWA Vaults. Sentinel Labs develops and maintains Firelight, while Sentora incubated it.
Firelight pools the capital for every covered vault in one Firelight Vault on Flare. Stakers deposit FXRP into that vault, and the pooled capital backs the full portfolio of coverage elected by participating operators. The capital sits outside the protocols it covers. Stakers receive emissions for supplying it, but their principal and compounded rewards can be slashed when a covered loss is approved.
The initial deployment embeds cover in two Sentora products. The USD Protected Vault allocates across dollar-denominated strategies on established DeFi protocols. The Protected RWA Vaults use strategies around real-world assets, including lending and leveraged looping in markets that accept those assets as collateral. Their underlying strategies continue to run as before. Firelight adds cover against defined protocol failures at the deposit level.
That structure removes a separate purchase step for depositors. A user entering a covered vault receives its protection under terms registered onchain. The user does not need to compare and buy an individual policy. The operator selects the coverage, while Firelight records its scope, parameters, price and capacity.
What the cover can pay for The published launch details name smart contract exploits, oracle failures, governance exploits, bad debt, mechanism-driven depegs and redemption failures as covered event categories. An event still has to satisfy the terms set for the affected vault. Firelight describes the product as coverage rather than insurance.
A payout begins with identifying every eligible active position in the affected market. ZeroShadow, Firelight’s designated security partner, then publishes an exploit report. A five-firm Risk Consortium independently checks the event, confirms the loss and publishes an onchain attestation. Its members are Hypernative, Native, Credora, Cyfrin and GFX Labs. The protocol cannot release a payout until the consortium authorizes the event against the published coverage criteria.
This creates a defined claims path, but it also puts a practical condition on protection. A vault label alone does not determine whether a loss qualifies. Users need the registered terms for that vault and the consortium’s eventual attestation. Operators need to keep the advertised risk scope consistent with the parameters recorded onchain.
Veda and Upshift are integrating Firelight at their infrastructure layers. Operators building on either platform will be able to switch on protection for their own vaults while drawing on the same Firelight Vault. That shared pool is the mechanism Firelight is using to extend capacity beyond the first Sentora products.
For an operator, enabling the integration does not make every loss payable. The operator still needs to select cover with a stated scope, price and capacity. Its users remain subject to the event categories and criteria recorded for that vault. The shared-pool design also connects operator demand to available staker capital. Adding a vault consumes capacity from the same pool that supports existing products, rather than creating a ring-fenced reserve for the new strategy. That makes the registered capacity a practical constraint for both vault marketing and deposit limits.
For depositors, the relevant comparison is between the vault’s published protection and its underlying strategy risk. Firelight can cover the named protocol failures, but the launch does not say that every investment loss or market move qualifies. The consortium’s review and attestation determine whether a reported event meets the terms before capital can be released.
How $XRP enters the protection pool $XRP holders can supply the pool through Flare Smart Accounts. A holder connects a supported XRPL wallet and selects the mint-and-deposit flow. The wallet sends $XRP on XRPL with the instruction attached. Flare’s Data Connector verifies the transaction, FAssets mints FXRP at a 1:1 representation on Flare, and the system deposits the FXRP into Firelight. The holder receives stXRP in a smart account controlled by the originating XRPL address.
The flow does not require the user to hold $FLR. Fees are charged in FXRP. Protocol emissions also stream in FXRP, including fees that operators pay in $USDC and that the system converts before adding them to a staker’s position. Firelight says emissions follow protocol revenue, so the amount available to stakers rises as operators enable more cover.
The return comes with direct exposure to covered losses. The staked deposit has no Firelight cover of its own, and slashing applies to accrued rewards as well as principal. Depositing through a Flare Smart Account also adds contract exposure to the account, FAssets and Firelight layers. Firelight lists OpenZeppelin, Coinspect and 0xMacro as contract auditors and says it completed a public Immunefi bug bounty, but it also states that contract risk remains.
Withdrawals are not immediate. Stakers initiate an exit through the web application and wait through the unstaking period. As cover becomes active, that window increases to match the 30-day coverage periods. A completed withdrawal returns FXRP, which the holder can redeem to $XRP at the XRPL address that opened the position. For allocators, the exit delay and slashing exposure are part of the yield calculation rather than operational details.
Capacity and the open question Flare says capital backing onchain cover equals about 0.14% of nearly $100 billion in DeFi. Firelight starts with a $115 million cap in $XRP on aggregate staked positions. The cap limits the capital available to support the first portfolio, while the exact protection available to each vault depends on its registered capacity and terms.
The broader integrations could add more covered vaults without creating separate capital pools. That may improve capital use, but it also means the same staker pool can stand behind a wider portfolio of risks. The unresolved point is how Firelight will price and allocate capacity as Veda and Upshift operators join, especially when several covered vaults depend on the same protocol, oracle or collateral. Firelight has not published that portfolio-level concentration detail in the launch announcement.
Firelight Goes Live With XRP-Backed Cover on FlareFirelight, a DeFi cover protocol incubated by Sentora, has launched onchain DeFi insurance coverage backed by 50.2 million staked $XRP on Flare Network, opening a new utility frontier for one of crypto's largest assets by market capitalisation.
The protocol targets risks that have historically caused significant losses across decentralised finance. Staked XRP is used to back coverage for risks such as smart contract exploits and oracle failures. Users can bridge XRP to Flare through the FAssets system, deposit FXRP (Flare's wrapped version of XRP) into Firelight, and receive stXRP on a 1:1 basis. By leveraging XRP bridged as FXRP, Firelight adds an onchain protection market to Flare, providing coverage for vaults like Sentora's USD Protected Vault. The total aggregate cap for staked XRP positions is set at $115 million.
Claims Process and Coverage ScopeOnchain updates reveal initial coverage for two Sentora vaults. Claims will be decided by a five-institution consortium requiring a three-out-of-five majority vote. A network upgrade is anticipated as the audit report for the coverage contracts remains pending.
The launch builds on growing momentum for XRP within Flare's DeFi ecosystem. Nearly 100 million XRP has been bridged to the network as FXRP, with close to 70% of that capital actively deployed in DeFi rather than sitting idle. FXRP is the first live deployment of Flare's FAssets system, which turns non-smart contract tokens like XRP into overcollateralised assets that can interact with DeFi protocols.
For XRP holders, the Firelight launch represents a concrete expansion of what the asset can do onchain, moving beyond simple transfers into capital-efficient risk underwriting.
Sources:
The Block: Firelight launches XRP staking protocol on Flare
TradingView/Chainwire: Firelight Is Live, Backed by Staked FXRP on Flare
Flare Network: Stake your FXRP on Firelight, Now Live
With onchain yield going mainstream, Firelight enables protection built into the vault, starting with Sentora’s vaults.
Firelight, an onchain cover-enablement protocol for DeFi, today announced that its protection is live, starting with Sentora‘s USD Protected Vault and Protected RWA Vaults. Until now, the most common practice has been for each depositor to research and buy protection on their own, which defeats the purpose of a vault, where the complexity of navigating risk management and strategies is abstracted away. A handful of vault-level options have emerged, but in most of them the party deciding a claim is the same party that has to pay it, and the capital behind a payout sits in the same assets that can fall in the event that triggered it. Firelight separates the two. Five independent firms validate every cover event against published criteria, and the capital backing cover sits outside the covered protocols.
Vaults are where onchain capital is heading. Curated vault assets have grown 39% over the past year and users have deposited more than $10 billion into Morpho in the last two years, around $1 billion of it through exchanges and fintechs. Apollo, which manages close to $940 billion, agreed to acquire up to 9% of Morpho’s governance token supply. However, available protection over these activities has been left behind. Oracle attacks on lending protocols have nearly tripled this year, while the capital behind onchain cover amounts to just 0.14% of the $88.3 billion locked in DeFi.
“As more capital moves onchain, protection needs to be as transparent and scalable as the markets it supports,” said Connor Sullivan, Chief Strategy Officer at Firelight. “Firelight is built for that future. The terms are public and programmatic, the capital can be verified onchain and every exploit event is validated by independent firms with no stake in the outcome. We see this as the foundation for DeFi’s next phase of growth.”
Firelight has enabled protection on Sentora’s USD Protected Vault and Protected RWA Vaults. Sentora is the largest vault curator in DeFi, with $2.8 billion in aggregate vault TVL across more than 300 strategies. The cover on these vaults enables protection against defined technical and economic events, such as oracle manipulation, an attack type behind this year’s rise in lending exploits, subject to pre-specified coverage limits.
Veda and Upshift, both leading vault infrastructure providers, integrate Firelight at the infrastructure layer, so operators building on them can elect protection enablement for their own vaults and depositors inherit it.
“Until now, protection has been missing from the infrastructure behind DeFi earn products,” said Lucas Outumuro, VP of Institutional DeFi Sentora. “Yield alone is no longer enough. Users deserve an extra layer of protection. We believe this should be the industry standard, and we are proud to be leading the way.”
Firelight registers each cover market’s terms onchain before cover is enabled, including scope, price and capacity, so what is protected is always visible in advance rather than argued over after a loss. Eligible events are named, and include smart contract exploits, oracle failures, governance exploits, bad debt and depegs from mechanism failure, and redemption failures. When an incident occurs, ZeroShadow, Firelight’s designated security partner, publishes an exploit report, and the Firelight Risk Consortium, an independent panel made up of Hypernative, Native, Credora, GFX Labs and Cyfrin, validates the occurrence of the event against those published criteria and confirms the existence of loss before payouts follow. The capital behind the Protocol’s programmatic cover engine is achieved by participants staking to the Protocol. Stakers earn a proportionate share of the Protocol’s emissions, generated in part by the fees operators pay for the enabled cover.
Firelight is audited by OpenZeppelin and runs a public bug bounty through Immunefi. The protocol is built on Flare Network, whose FAssets infrastructure brings XRP onchain as the collateral backing cover, and is incubated by Sentora. Firelight recently raised $8 million led by Gumi Cryptos Capital with participation from Tribe Capital and Maven 11.
About Firelight
Firelight is a decentralized protection layer for digital assets. Built on the Flare Network and incubated by Sentora, Firelight enables a capital-backed market for DeFi cover, registering coverage terms onchain, holding capital in non-custodial vaults and validating every cover event through an independent Risk Consortium. Protocols and vault operators purchase protection while stakers earn fees for backing it.
About Sentora
Sentora is an institutional DeFi platform combining strategy design, risk management and cover in one system, enabling capital to be deployed at scale across DeFi markets. Formed in 2025 from the merger of IntoTheBlock and Trident Digital, Sentora curates vaults for leading protocols and institutions, applying more than 1,000 risk models across 300 monitored strategies.
Disclaimer
This third-party press release is published substantially as received and does not reflect BeInCrypto's editorial views. BeInCrypto has not independently verified its claims or assessed the suitability, legality or appropriateness of any referenced asset, product or service; publication is not an endorsement. The content is general information, not investment research, financial, investment, legal or tax advice, a personal recommendation, offer or solicitation. Verify all information and seek professional advice where appropriate before acting. Crypto-assets may result in total loss.
The protocol's first cover positions went to two Sentora vaults, with payouts standing behind 50.2 million XRP staked on Flare. Claims are decided by a five-firm consortium on a three-of-five vote, and the coverage contracts' audits are listed as coming soon.
The protocol's first cover positions went to two Sentora vaults, with payouts standing behind 50.2 million XRP staked on Flare. Claims are decided by a five-firm consortium on a three-of-five vote, and the coverage contracts' audits are listed as coming soon.
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Firelight, a DeFi cover protocol incubated by Sentora, has launched insurance coverage backed by 50.2 million XRP staked on the Flare network. This development marks the introduction of a new utility for XRP within the DeFi ecosystem, as staked XRP is used to back coverage for risks such as smart-contract exploits and oracle failures. The total aggregate cap for staked XRP positions is set at $115 million. By leveraging XRP bridged as FXRP, Firelight adds an on-chain protection market to Flare, providing coverage for vaults like Sentora’s USD Protected Vault.
Key Takeaways Firelight’s use of staked XRP for DeFi cover suggests increased utility and adoption of XRP. The aggregate cap for staked XRP positions is $115 million, indicating a significant commitment to backing coverage. This development appears to align with market sentiment supportive of a positive outcome for XRP’s long-term prospects. What to Watch Market participants will likely focus on how the introduction of DeFi insurance impacts XRP’s adoption and utility. Additionally, the reaction of key actors such as Ripple CEO Brad Garlinghouse and financial institutions like BlackRock and Fidelity could provide further indications. Observers should also monitor regulatory developments, including any actions from the U.S. SEC, which may influence market sentiment and the pricing of XRP’s all-time high potential by December 2026.
@FlareNetworks has launched Flare Confidential Compute (FCC) on Songbird, its canary network, enabling smart contracts to verify sensitive institutional data without exposing the underlying figures onchain. The first live application is a Proof of Reserves check for @Hex_Trust's USDX stablecoin, making it the first stablecoin to use the technology.
How it works The TEE is a sealed hardware enclave, meaning the computation runs in isolation and the raw data never surfaces onchain.
A mainnet deployment on Flare is expected to follow.
USDX: private reserves, public verdict
FCC is designed to bridge that gap, potentially extending the model well beyond stablecoin reserves.
Sources:
Analytics Insight: Hex Trust's USDX Becomes First Stablecoin to Use Flare's Confidential Proof of Reserves
Cryptowisser: Flare Launches Confidential Compute on Songbird With USDX Reserve Verification
mpost.io: Flare Confidential Compute Launches on Songbird
Flare has launched Flare Confidential Compute (FCC) on Songbird, introducing infrastructure that allows smart contracts to use sensitive institutional data without publishing the underlying information onchain. The system processes private inputs inside a Trusted Execution Environment (TEE) and returns a signed result that smart contracts can independently verify.
The launch addresses a major limitation for bringing traditional financial activity onchain. Institutional information such as reserve balances, fund NAVs, collateral positions, credit information and compliance records often cannot be made public, even when blockchain applications need to verify facts derived from that data.
FCC is designed to bridge that gap. Instead of exposing the raw information, confidential data is processed privately and only the resulting conclusion is published. For example, a smart contract could verify that an asset meets a required collateral threshold without seeing the institution’s actual balances.
The first real-world application is already live with Hex Trust’s USDX stablecoin. FCC combines public reserve information with restricted cash reserve data and compares the total against USDX supply. It then produces a signed result confirming whether USDX is backed 1:1 or better, while keeping the actual private reserve balances confidential.
The technology could extend well beyond stablecoins. Flare points to potential applications including tokenized funds that calculate verifiable NAVs from undisclosed holdings, lending protocols that combine public prices with private collateral information, and credit or compliance systems that need to verify a conclusion without revealing sensitive records.
FCC is initially available on Songbird, Flare’s canary network, with a separate deployment on Flare planned to follow.
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Flare's FXRP has evolved beyond liquidity pools, as lending, staking, vaults and credit markets have now added new uses for XRP.
FXRP has reached its first anniversary on Flare as the network expands the number of financial applications available to XRP holders. The token went live on September 24, 2025, as the first asset launched through Flare’s FAssets system.
Its initial 5 million minting limit was filled within roughly four hours.
Flare’s Expansion The milestone comes after a year of development around lending, liquidity, staking, and yield products. FXRP represents XRP on Flare as an ERC-20 token. The asset is backed by XRP on the XRP Ledger through the FAssets system. Flare uses its oracle protocol FDC to verify activity on the XRPL.
Several protocols have since built products around the token. Kinetic introduced lending markets. SparkDEX, BlazeSwap, and Enosys developed liquidity venues. Firelight uses FXRP to build onchain cover, turning staked XRP into capital designed to provide capital against risks such as exploits, oracle failures, and bad debt. Spectra brought fixed-rate and yield trading to the asset. Upshift’s earnXRP and Clearstar added vault-based strategies. Enosys also introduced a way to use the token as collateral for debt.
Access from the XRP Ledger has also been a focus. Flare Smart Accounts connect XRPL activity with applications running on Flare. The system was integrated with Xaman in February 2026 through earnXRP. Later updates added more wallet support and reduced some supported processes to a single XRP Ledger signature.
The network also made changes for broader distribution. For instance, FAssets v1.3, which was released in May, added destination-tag minting. The feature is intended to make integrations with exchanges and custodians easier. FXRP also expanded in 2026 to Ethereum and Base.
Another development came in August. A Morpho market built with Sentora allowed it to be supplied as collateral for borrowing RLUSD on Ethereum. The development expanded FXRP’s use into credit markets, beyond liquidity and yield applications. Flare also made changes to its token economics. FIP.16 cut annual FLR issuance from 5% to 3%. The proposal also reduced the annual issuance ceiling from 5 billion FLR to 3 billion FLR.
You may also like: XRP Treasury Giant Evernorth Raises $30 Million – But There’s a Catch Could XRP Actually Flip Bitcoin? Former Ripple CTO Says Yes – But the Math Is Brutal Ripple CEO Breaks Silence After CLARITY Act Vote Fails: XRP’s Legal Footing Unchanged Additionally, the network is developing Flare Confidential Compute and Protocol Managed Wallets. The initial deployment path for these systems is planned through Songbird.
Flare said the technology is intended to support assets beyond XRP. Its data protocols are integrated into network consensus, which lets assets issued elsewhere be verified and used in applications without requiring the underlying asset to leave its original ledger. FXRP is the first production example of that model on Flare.
Partnership With D’CENT In May, Flare expanded its XRPFi push with D’CENT Wallet to give its hardware-wallet users a direct way to access XRP yield products. The integration was built around Flare Smart Accounts, so users did not need to move to another chain or hold a separate gas token.
Instead, they could access the Monarq XRP Yield Vault and earnXRP through two signatures on the XRP Ledger. The move was part of the newly formed XRP Alliance, which also includes Doppler, Banxa, and Squid.
Flare founder Hugo Philion has proposed a way for XRP holders to use their XRP on the XRP Ledger as collateral, borrow RLUSD through Flare, and receive the RLUSD directly in their XRPL wallet.
The idea would let users “borrow RLUSD against their XRP directly from the XRP Ledger” using Flare Smart Accounts, while keeping the borrowed RLUSD on the XRP Ledger.
However, this would require two things:
The Wormhole RLUSD bridge must be operational. XRP Ledger validators must approve the PermissionDelegationV1_1 amendment. PermissionDelegationV1_1 would allow XRPL accounts to give another account permission to perform certain transactions without sharing their private keys. This makes it easier to build more flexible account-management and application features.
How the XRP-RLUSD Flow Would Work Under Philion’s proposal, users will keep their XRP on the XRP Ledger instead of manually moving it between different wallets. Users could represent XRP on Flare as FXRP and use it as collateral to borrow RLUSD. Users can then send the borrowed RLUSD back to their XRP Ledger wallet.
In simple terms:
XRP on XRPL → FXRP on Flare → Borrow RLUSD → Receive RLUSD on XRPL
XRPL validator Vet described Flare as an “extended arm” of the XRP Ledger. In this setup, users deposit XRP on XRPL, receive FXRP on Flare, borrow RLUSD through Morpho, and get the RLUSD in their XRPL wallet without creating a new wallet or account.
The idea builds on Flare’s existing work to connect XRP with Ethereum-based DeFi. Flare has also received approval for an FXRP lending market involving RLUSD, with Morpho providing the lending infrastructure. Flare is developing Smart Accounts that could allow users to authorize the entire process directly from an XRP Ledger wallet.
Honestly, that's a very creative and impressive XRP unlock!
Flare acts as an extended arm for the XRP Ledger here.
Deposit XRP on XRPL -> Flare FXRP -> Borrows RLUSD on Morpho -> Receive RLUSD on XRPL in your wallet.
All that without new accounts or wallets. Even more bullish… https://t.co/PFDS6xsNLI pic.twitter.com/QgZ43yx8ay
— Vet (@Vet_X0) September 16, 2026
Permission Delegation Is Important PermissionDelegationV1_1 is important because it would allow an XRP Ledger account to let another account carry out certain transactions for it.
The feature uses a DelegateSet transaction to give, change, or remove specific permissions. The authorized account can then make approved transactions without taking control of the original account.
For the feature to go live, XRP Ledger validators must approve the amendment. According to XRPL documentation, it needs more than 80% validator support for two weeks before it can be activated.
For now, PermissionDelegationV1_1 is still going through the validator voting process. This means the proposed Flare lending system depends on the amendment being approved and activated.
Community Reacts to Flare’s XRP Lending Idea XRP commentator Eri said the proposal builds on infrastructure created through Ripple’s connection with Wormhole.
In simple terms, users could approve the transaction from their XRPL wallet, keep their XRP on the XRP Ledger, and receive RLUSD at the same address. The lending itself would happen through Ethereum-based infrastructure.
Another XRP community member, Krippenreiter, pointed out that users would start and finish the process on the XRP Ledger, while FXRP would represent their XRP on Flare and act as collateral.
This gives XRP holders access to decentralized lending without manually managing several blockchain accounts. For Flare, the proposal would strengthen its role as a link between the XRP Ledger and Ethereum-based DeFi.
@FlareNetworks has launched Flare Confidential Compute (FCC) on the Coston2 testnet, with a rollout to Songbird scheduled as the next step. The deployment is notable for how it is structured: rather than introducing a separate operator set, FCC inherits the existing signing policy and weighted provider infrastructure that already underpins the Flare Time Series Oracle (FTSO) and the Flare Data Connector (FDC).
How FCC Uses the Existing Provider Set According to Flare's developer hub, FCC extends the Flare blockchain with Trusted Execution Environments (TEEs) to enable secure off-chain computation, cross-chain transaction signing, and fast data attestation. The code runs inside hardware-isolated enclaves, and operators cannot inspect the instructions being processed inside them. Data providers and cosigners function as instruction relayers, parsing instruction events from smart contracts, augmenting them with external data, signing them, and transmitting them to TEE machines.
Because FCC draws on the same provider set that powers FTSO and FDC, it does not require a new trust layer to be bootstrapped from scratch. FTSO is Flare's native oracle, built directly into the network's core protocol, delivering price feeds backed by around 100 independent data providers selected through delegated stake. FDC, meanwhile, handles cross-chain verification. FCC sits on top of both, using their combined economic security.
One of the key capabilities unlocked by this architecture is Protocol Managed Wallets (PMW). PMW enables programmable assembly and signing of transactions on external blockchains, including XRPL and Bitcoin, through smart contract calls on Flare. That means enclaves running inside FCC can sign transactions on third-party chains without exposing private keys to any operator.
Pre-Production Status, No Mainnet Date Flare's developer hub states that FCC is in the final stages of development and is not yet a fully public production system. No mainnet launch date has been announced. Developers can already begin building Flare Compute Extensions (FCE) using the available getting-started guides, but the system remains in a pre-production phase.
The range of use cases FCC is designed to support is broad. The infrastructure supports transaction types including swaps, lending, borrowing, staking, cross-chain transfers, and large order execution, as well as dark pools and sealed-bid auctions that are difficult to implement on fully transparent public ledgers.
For now, the Coston2 testnet deployment gives developers a live environment to test confidential compute applications ahead of any broader release.
Sources:
Flare Developer Hub: Flare Confidential Compute Overview
Flare Network: Flare Time Series Oracle (FTSO)
Coin Edition: Flare Developers Build Privacy Layer for XRP Ledger and Bitcoin
Flare Networks co-founder Hugo Philion has responded to concerns about FXRP after Ripple engineer Neil Hartner raised questions about the security of blockchain bridges.
Notably, the discussion followed a security incident involving Liquid Network’s Liquid BTC. The company said hackers withdrew about 4,000 BTC, worth roughly $320 million at the time, from the Liquid Federation wallet.
Hartner responded to the incident by saying, “Bridges are hard.” Meanwhile, Flare promoter Hussein Badakhchani replied that Flare had “fixed” the problems associated with bridges.
However, Hartner responded by saying, “I think of this often,” while referencing a 2024 warning that there are essentially two types of bridges: those that have already been hacked and those that will eventually be hacked.
Giving a subtle jab at Flare, founder Philion joined the conversation.
Philion Defends FXRP Security Philion said it was “super depressing” to see comments from key Ripple figures that appear to ignore concerns important to XRP holders and the Flare ecosystem.
He said comments from well-known Ripple figures could make the XRP community think that Ripple is against Flare and FXRP. Philion stressed that this is not the case.
He then explained why he believes FXRP was built with security in mind. According to Philion, most of the XRP used in FXRP is protected through XRPL Escrow, the same system Ripple uses to hold its large XRP reserves.
He said XRPL Escrow has safely held large amounts of XRP for years, so the likelihood of a major, undiscovered security flaw is relatively low. Philion added that if XRPL Escrow itself had a serious security problem, it would affect much more than just FXRP.
FXRP Limits Potential Losses Philion also explained what could happen if FXRP were hacked. He said that if an attack occurred, most of the XRP held in escrow would be moved to a custodian for protection. The remaining XRP, usually less than 20%, is backed by additional collateral in stablecoins and FLR.
The idea is to limit how much money an attacker could steal.
Philion said FXRP was designed to keep the amount of funds at risk as small as possible. This means that even if a security breach occurred, the losses would be much smaller than those seen in some major bridge hacks.
Ripple Engineer Clarifies His Comments Meanwhile, Hartner later said Philion had misunderstood his earlier comments. He explained that his main concern was the long history of bridge hacks. Because of this, he believes users should be “hyper-vigilant” when using any bridge.
Hartner also said he was not suggesting that Flare is careless about security. Instead, he was warning that saying a bridge has “fixed” its security problems could make users overly confident.
You’re misreading me. Given how many bridges have been hacked over the years, users should approach all of them with hypervigilance. My worry is that framing any bridge as having “fixed it” breeds complacency. Not saying that Flare itself is complacent or lax on security.
— Neil Hartner (@illneil) September 7, 2026
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Beating AI Insight News: OpenAI releases ChatGPT Images 2.5. Compared to its predecessor, the new version cuts image generation latency by up to 50%, and better preserves the appearance and details of people and pets when editing photos. Editing is also more user-friendly: users can directly circle a specific area in an image and instruct ChatGPT on changes, such as replacing just one petal or modifying a single object’s color. When making multiple consecutive edits, it is less likely to alter unrelated areas by accident. ChatGPT now also supports drawing sketches to control composition, and has added common image templates for posters, merchandise, and more. Images 2.5 is now available to ChatGPT, ChatGPT Work, and Codex users. Two API versions, Flare and Sunburst, are also launched. Flare is faster, ideal for bulk image generation; Sunburst is more precise, suited for scenarios with higher visual standards. In the latest Arena benchmark, Sunburst ranks first and Flare ranks second, with both models taking the top two positions across all three categories: text-to-image, single-image editing, and multi-image editing.
The Flare [FLR] Improvement Proposal (FIP) 16 passed earlier this year in April with 98.06% in favor. The proposal restructured FLR issuance, burn rate, transaction fees, and protocol revenue.
Most of the roadmap is live, and a DeFiLlama report shows the effects onchain. The Layer 1 EVM chain’s token issuance fell from 5% to 3% in May. Flare Network now has 21 billion FLR staked, up from 16 billion tokens in July.
The staked share of staked-or-delegated FLR climbed from 32% in July to 46% in late August, securing the network and removing tokens from immediate circulating supply. Moreover, after the July 14 hard fork, the current burn rate has increased at least tenfold.
Lower inflation and a burn rate orders of magnitude higher than a few months ago, combined with growing protocol revenue, were good news for users and holders. How has FLR price reacted to these developments?
The weekly Flare crypto chart outlines a clear price trend Source: FLR/USDT on TradingView The Flare crypto price trend has been bearish and has seen sliding prices since late September. Its weekly swing structure turned bearish in December 2025 after FLR slipped below the $0.0121 low.
The RSI has remained below neutral 50 since October 2025. Meanwhile, the OBV has continued its persistent downtrend. Neither the downward momentum nor steady selling pressure has reversed.
The $0.00725 level acted as support in April. Flare is now testing that former support as resistance.
Traders’ call to action- Respect the long-term trend Source: FLR/USDT on TradingView The drop from $0.00829 to $0.00585 in recent months marked the latest swing move on the daily timeframe. In August, FLR twice rallied to the $0.0080 area, just above the 78.6% Fibonacci retracement level at $0.00776.
Twice, the bulls faced rejection. Since the high of $0.00825 made on the 31st of August, FLR is down by 20.9%. The technical indicators were not in favor of the bulls either.
It appeared likely that the higher timeframe trend would be respected, and Flare crypto would descend toward new lows.
The growing adoption and encouraging onchain signs seen earlier could lead to a sentiment turnaround. A price move above $0.00829 would break the bearish structure and serve as the first sign of a bullish trend shift.
Final Summary The FIP 16 passed in April with resounding support. Most of the roadmap is now live, and the effects are visible onchain. At the same time, the Flare crypto long-term price trends remained bearish.
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 →
XRP has long been one of crypto’s most widely held assets, but it’s also been one of the most frustrating to put to work. While Ethereum and Solana holders have had a buffet of DeFi options for years, XRP largely sat in wallets collecting dust. Flare Networks is changing that equation, and the numbers suggest holders are paying attention.
The Flare Smart Accounts (FSA) v1.3 update, launched on July 28, 2026, lets XRP holders mint FXRP, a 1:1 representation of their XRP on the Flare network, and deposit it directly into yield-generating vaults. The kicker: it requires just a single signature from an existing XRPL wallet. No complex bridging protocols, no setting up a separate EVM wallet.
The numbers tell the story FXRP deployed in DeFi has grown from 82 million to 144 million since February 2026. That’s roughly 75% growth in about five months.
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Beyond the FXRP figures, more than 40 million XRP is currently earning yield through integrated wallets like Xaman and D’CENT.
The vault ecosystem is where things get interesting. Monarq operates a multi-strategy XRP Yield Vault targeting 3-4% APY through diversified strategies.
Clearstar’s fully on-chain DeFi vault has deployed over 33 million FXRP across lending and liquidity protocols.
How the plumbing actually works FXRP is part of Flare’s broader FAssets system, which creates representations of non-smart-contract tokens on Flare’s EVM-compatible network.
Each FXRP token remains backed 1:1 by XRP collateral secured on the XRP Ledger itself. Users don’t surrender custody of their underlying assets to a centralized entity. The collateral sits on XRPL, the representation lives on Flare, and smart contracts handle the mechanics in between.
This latest update builds on groundwork laid by the earnXRP vault, which launched in December 2025. That initial product established the basic infrastructure for XRP yield generation on Flare, but the newer vault options from Monarq and Clearstar offer variable returns and more sophisticated strategies compared to the earlier fixed-rate approach.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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 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.
AUTHOR
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
Flare [FLR] joins the market’s top gainers, delivering a staggering 15% rally, with the price trading at about $0.0065 at the time of writing.
Market analysis shows that there is a high chance the rally may not stop here and, in fact, could still create a new high depending on certain key structural hurdles it can overcome on the chart.
Bullish structure, but hurdle surfaces FLR’s structural pattern is presently optimistic, as the asset’s price pattern over the past couple of days has shaped into a cup-and-handle pattern.
This has been a bullish precursor, especially when the price breaches the neckline. In the case of FLR, this is the horizontal resistance level at $0.0075, which could pave the way for further upside on the chart.
Source: TradingView The bullish outlook has three key levels, with the closest being $0.0082, followed by $0.0084, while the most bullish outcome places FLR at $0.010 on the chart. Momentum will play a major role in determining where the price rallies next.
However, the major hurdle remains overcoming the neckline resistance, which could determine whether the market witnesses a solid run or not. Regardless, a rally from the current price level to the neckline would deliver roughly 10% upside.
Indicators show strength Overall, the indicators show that the market has strengthened, with momentum supporting the possibility of a continued rally.
At the time of this report, the Aroon Indicator, a trend analysis tool, shows that the Aroon Up line, marked in orange, is above the Aroon Down line, with readings of 92.86% and 7.14%, respectively.
Whenever these lines are set apart, with the Aroon Up line higher than the Aroon Down line, there is a higher chance that the price will continue to form higher swings.
Source: TradingView However, in this case, it is worth noting that the most bullish outlook comes when Aroon Up reaches 100% while Aroon Down sits at 0.00%.
The Accumulative Swing Index (ASI) has also shaped up in a way that indicates the market is bullish, with the ASI trending upward on the chart.
Right now, the ASI has ticked slightly lower, marked in red. However, this is more likely a reflection of a pullback than the beginning of a wider market correction.
Spot market could impact the trend Spot market traders could play a decisive role in ensuring that the asset continues to rally. At the time of this report, there has been a massive surge in demand for FLR.
Data from CoinGlass shows that netflow reached roughly $325,000, suggesting that more of the asset has moved out of exchanges and into private wallets for long-term holding.
Source: CoinGlass If this movement of capital is sustained, with outflows continuing to outweigh inflows, it could support FLR’s push toward a new high in the near term.
Final Summary FLR’s bullish cup-and-handle structure puts $0.0082 and $0.0084 in focus, with $0.010 possible if momentum strengthens. Strong Spot demand and rising outflows could support FLR’s rally as buyers push the price toward a new high.
U.S. stock futures were lower on Monday, as the Dow Jones, S&P 500 and Nasdaq 100 indices fell, following Friday’s lower close.
Geopolitical and trade anxieties spiked over the weekend following U.S. military strikes on Iranian rocket launchers on Larak Island near the Strait of Hormuz, which triggered Iranian missile and drone retaliation against U.S. air bases in Jordan on Sunday. Meanwhile, President Donald Trump intensified trade tensions by calling Canada "the worst" for trade abuses and asserting his tariffs have "saved" the U.S. auto industry.
The market will turn toward key economic indicators this week, highlighted by Friday’s crucial August employment data. Investors will also be tracking a busy earnings lineup this week, featuring top AI infrastructure providers such as Dell Technologies Inc. (NYSE:DELL), Hewlett Packard Enterprise Co. (NYSE:HPE), and Broadcom Inc. (NASDAQ:AVGO), along with cybersecurity leader Palo Alto Networks Inc. (NASDAQ:PANW).
On Friday, Federal Reserve Chair Kevin Warsh used his first Jackson Hole address to warn investors that the fight against inflation remains far from finished. He delivered a hawkish message: inflation remains too high, the labor market is effectively at full employment, and financial conditions may not be restraining the economy much at all.
The 10-year Treasury bond yielded 4.71%, and the two-year bond was at 4.31%. The CME Group’s FedWatch tool projections show markets pricing a 61.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
IndexPerformance (+/-)Dow Jones-0.09%S&P 500-0.13%Nasdaq 100-0.04%Russell 20000.11%The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Monday. The SPY was down 0.23% at $767.56, while the QQQ declined by 0.17% to $715.19.
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Stocks In FocusBiomX BiomX Inc. (NYSE:PHGE) tumbled 5.35% after disclosing a 1-for-10 reverse stock split of common stock. Trending
Benzinga’s Edge Stock Rankings indicate that PHGE maintains a weak price trend in the short, long, and medium terms. Walmart Walmart Inc. (NYSE:WMT) was just 0.049% higher as it agreed to pay $50 million to settle a Department of Justice lawsuit alleging its pharmacies unlawfully filled opioid prescriptions, fueling the national opioid epidemic. Benzinga’s Edge Stock Rankings indicate that WMT maintains a weak price trend in the short, long, and medium terms, with a good growth score. ONEOK ONEOK Inc. (NYSE:OKE) was up 0.27% after it agreed to acquire Brazos Midstream’s Permian Midland Basin assets for a $4.425 billion all-cash transaction along with a $9 billion minority equity investment. Benzinga’s Edge Stock Rankings indicate that OKE maintains a strong price trend in the short, long, and medium terms, with a solid value score. Rezolve AI Rezolve AI PLC (NASDAQ:RZLV) was 3.39% higher as it announced a global strategic alliance with Tech Mahindra Ltd. to accelerate the deployment of agentic commerce across large enterprises worldwide. Benzinga’s Edge Stock Rankings indicate that RZLV maintains a strong price trend in the short and medium terms but a weak trend in the long term. FingerMotion FingerMotion Inc. (NASDAQ:FNGR) corrected by 15.83% in premarket on Monday after soaring 129.53% on Friday as investors reacted to corporate updates detailing new management’s strategic pivot into behind-the-meter artificial intelligence and high-performance computing data center infrastructure across North America and its alliance with BlueFlare Energy Solutions Inc. Benzinga’s Edge Stock Rankings indicate that FNGR maintains a weak price trend in the long, short, and medium terms. Read Next
Cues From Last SessionConsumer discretionary and communication services stocks bucked the overall market trend to end higher on Friday, while most S&P 500 sectors closed lower, led down by information technology, utilities, and industrials.
Insights From AnalystsMohamed El-Erian highlights a market caught between “a tug-of-war between top-down macro policy and bottom-up corporate earnings”. While robust corporate fundamentals continue to cushion sentiment—driven by big tech performers like Nvidia Corp. (NASDAQ:NVDA) and Broadcom—underlying structural pressures threaten broader market stability.
El-Erian observes that U.S. equities face significant crosscurrents, particularly from sovereign debt dynamics. Rising U.S. yields—with the 10-year at 4.73% and 30-year at 5.20%—reflect growing “flow-of-funds strain facing the US bond market,” exacerbated by foreign sales of U.S. securities.
Although the Treasury’s impulse to suppress long-end yields is understandable to protect housing and consumer affordability, El-Erian warns of “valid warnings of market distortion and unintended systemic side effects.”
On policy, Federal Reserve Chair Warsh’s debut Jackson Hole address delivered a “hawkish” assessment. Markets now price in an increased probability of a September rate hike, as domestic macro signals remain mixed. With key data like the August Employment Report on the horizon, El-Erian expects ongoing volatility across energy, foreign exchange, and sovereign yields to dictate near-term direction.
Upcoming Economic DataHere’s what investors will be keeping an eye on this week.
No data is scheduled to be released on Monday. On Tuesday, August’s flash S&P U.S. manufacturing PMI data will be released by 9:45 a.m., while August’s ISM manufacturing PMI, July’s construction spending, and July’s JOLTS job openings data will all be out by 10:00 a.m. ET. On Wednesday, August’s ADP national employment report will be released by 8:15 a.m., followed by July’s factory orders data at 10:00 a.m., and the Federal Reserve’s Beige Book release at 2:00 p.m. ET. On Thursday, initial jobless claims for the week ending Aug. 29, July’s U.S. trade balance data, and Federal Reserve Governor Christopher Waller‘s remarks at the Reuters NEXT Newsmaker Interview will all be released by 8:30 a.m. ET. August’s flash S&P U.S. services PMI will be out by 9:45 a.m., August’s ISM services PMI will be released by 10:00 a.m., and Cleveland Fed President Beth Hammack alongside Chicago Fed President Austan Goolsbee will deliver special remarks at the ‘Connecting Communities’ online event at 3:00 p.m. ET. On Friday, August’s employment report, unemployment rate, and average hourly earnings data will all be out by 8:30 a.m. ET. Commodities, Crypto, And Global Equity MarketsCrude Oil WTI futures were trading higher in the early New York session by 3.45% to hover around $86.34 per barrel.
Gold Spot US Dollar fell 0.37% to hover around $4,438.70 per ounce. The U.S. Dollar Index spot was 0.13% lower at the 99.5690 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.50% higher at $78,411.64 per coin over the last 24 hours.
Asian markets were mixed on Monday, as South Korea’s Kospi and China’s CSI 300 indices rose. Australia’s ASX 200, India’s Nifty 50, Hong Kong’s Hang Seng, and Japan’s Nikkei 225 indices fell. European markets were mixed in early trading.
An Oracle Built Into the Chain Itself@FlareNetworks takes a different approach to price data than most blockchain networks. Rather than relying on a third-party oracle service, , meaning every price feed it produces carries the same security guarantees as the chain itself.
That distinction matters for DeFi applications that depend on price accuracy: the oracle cannot be separated from the chain's consensus, removing a common attack surface found in bolt-on oracle designs.
How the Random Draw and Commit-Reveal Mechanism WorkProvider selection is not static. On every block, roughly every 1.8 seconds, a stake-weighted random draw picks a sample from the network's pool of data providers. The selected providers submit small incremental updates to the previous price, keeping feeds current without requiring every provider to act on every block.
Layered on top of that fast feed is a slower anchor round that runs approximately every 90 seconds. In that round, all providers participate in a commit-reveal process: they submit their prices in sealed form first, then open them simultaneously. The sealed submission prevents any provider from copying another's answer before committing, preserving genuine independence across the provider set. Outlier submissions are filtered out, which stops bad or manipulated readings from pulling the final price off course.
That competitive dynamic gives providers an economic reason to submit accurate data rather than free-ride on others.
Delegation lets ordinary token holders align their stake behind providers they trust, reinforcing the stake-weighting that drives the random selection process.
The design positions Flare's oracle as infrastructure rather than an add-on, with the two-speed architecture, fast per-block feeds anchored by periodic commit-reveal rounds, aimed at combining responsiveness with resistance to short-term manipulation.
Sources
Flare Developer Hub: FTSOv2 Overview
Flare Network: Flare Time Series Oracle (FTSO)
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.
Flare’s FLR token continued its recovery on Friday, climbing 6.95% to approximately $0.00743 as trading activity increased.
The price move took FLR above a level that had limited earlier recovery attempts, but the speed of the rally also brings with it the possibility of a short-term pause.
FLR rebounds from a record low FLR reached a daily high of $0.00749, continuing a positive move that began after it fell to a record low on August 19.
Trading volume rose sharply with the price, giving the positive move more weight, as it shows that buyers were actively in the market during the move.
FLR also pushed above resistance at $0.00717, moving to price levels that have been closely watched. Being able to stay above $0.00717 when the daily session closes would strengthen the case that the recovery is not just a temporary bounce, but the next major hurdle sits around $0.0083.
Source: TradingView But because FLR traded near this area before its latest decline, some holders may choose to sell if it returns there. Still, the rally has been quick, and there are indicators on the daily chart showing that it has already entered an overheated range, which suggests that buyers may need a breather.
If FLR falls back below $0.00717, the area around $0.00694 could offer its first test of support.
Flare reshapes its token plan The price recovery comes months after Flare proposed changes intended to connect network activity more closely with FLR.
Under the plan, the annual inflation would fall from 5% to 3%, and Flare wants to collect revenue generated across the network and use part of it to reduce the token supply.
The proposal came after FlareDrops ended in January 2026, a program that distributed 24.2 billion FLR over three years, making its conclusion important to token supply.
The FLR price rose during a wider crypto-market recovery, meaning broader market sentiment may have contributed.
Final Summary FLR moved above $0.00717 as price and trading volume increased. If it’s able to hold that level, $0.0083 could be the next major test.
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
In brief CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed during a CFTC roundtable in Washington, D.C. Duffy singled out Kalshi while questioning whether prediction markets face the same regulatory scrutiny as established exchanges. The clash comes amid a fight between federal and state regulators over prediction markets. A CFTC roundtable on prediction markets turned heated Thursday when CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara traded insults over market manipulation and regulation.
The confrontation unfolded during a Commodity Futures Trading Commission meeting in Washington, D.C., as executives from traditional finance, crypto, and prediction markets debated how event contracts should be regulated.
Myriad: Will the Clarity Act be signed into law in 2026? Click to make your prediction.Duffy, whose CME Group operates the world's largest futures exchange by volume, said he was "a lot concerned" about prediction markets and argued that some contracts are susceptible to manipulation.
"We're not a bunch of carnival barkers at a circus," Duffy said. "We are running the most envious markets in the world in the United States of America."
Duffy then took aim at the types of contracts Kalshi offers, mocking one in particular.
"There's another really economic contract that has been massively important for the United States. That's a Nathan's hot dog eating contest," Duffy said sarcastically.
He also questioned why Kalshi could offer a compute prediction market while CME's proposed compute contracts remained under review.
After Kalshi was called out by name, Lara challenged Duffy on CME's own history.
"I just wanted to respond since we were called by name here," Lara said. "I would actually have to ask Terry: Has CME ever had any issues with any market manipulation, any issues ever in its history?"
"If you'd like to have a debate, I'm happy to have a debate with you," Duffy replied.
"I'm just asking a simple answer to a question," Lara said.
"I have more people in my regulatory department than you have in your whole company," Duffy said, referring to the size of CME Group's operation compared to Kalshi.
"Maybe you should learn a bit about efficiency then," Lara fired back.
"Well, maybe you should learn about credible markets," Duffy replied, before moderator Walt Lukken stepped in.
Lara then argued that the problems Duffy raised were not unique to prediction markets.
"Every market has risk and every nascent market will have risks as well, and there have been issues in every single traditional market and every single exchange here, onshore and offshore," she said. "And I think the point of having regulation is that you find these issues, you address these issues, and there's a way to address them in a correct way.”
DraftKings CEO Jason Robins later urged participants to stop attacking each other's businesses.
"I would just ask everybody, both in this hearing and then also in future communications, to try to refrain from taking shots at each other's business models or decisions you may not 100% agree with," Robins said. "That doesn't advance the discussion."
Prediction Markets Face Regulatory Fight
Prediction markets allow their users to wager on the outcome of virtually any event through futures contracts that settle for $1, with the price of the contract implying the odds of the event. For instance, on Myriad—a prediction market operated by Decrypt’s parent company Dastan, the event contract for “Bitcoin highs in August” is priced at 59 cents on the $75K outcome, implying users believe there’s a 59% chance Bitcoin reaches $75,000 before the end of the month.
Myriad: Bitcoin next price move? Click to make your prediction.Prediction market platforms that operate in the United States, like Polymarket and Kalshi, have become the focus of a fight between federal regulators and states over whether contracts tied to sports, elections, and other real-world events are federally regulated derivatives or gambling products subject to state law.
CFTC Chair Selig has defended the agency's jurisdiction over federally regulated prediction markets, warning states challenging that authority in February.
"We will see you in court," Selig said in a video posted to X. The agency has since taken legal action against states seeking to regulate event contracts under their gambling laws.
In June, the CFTC proposed restrictions on certain contracts involving war or assassination and some sports proposition bets considered particularly susceptible to manipulation.
Earlier this month, nine Democratic senators urged Selig to prohibit wildfire event contracts, warning they could create incentives for arson, insider trading, and disaster profiteering.
Kalshi has faced legal setbacks in several states. Last week, a Washington judge ordered the company to stop offering contracts on sports, elections, politics, and other events in the state, finding it likely violated state gambling and consumer protection laws. Two days earlier, the CFTC ordered Kalshi to keep trading amid a separate dispute over New York's attempt to block its contracts.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
In brief CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed during a CFTC roundtable in Washington, D.C. Duffy singled out Kalshi while questioning whether prediction markets face the same regulatory scrutiny as established exchanges. The clash comes amid a fight between federal and state regulators over prediction markets. A CFTC roundtable on prediction markets turned heated Thursday when CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara traded insults over market manipulation and regulation.
The confrontation unfolded during a Commodity Futures Trading Commission meeting in Washington, D.C., as executives from traditional finance, crypto, and prediction markets debated how event contracts should be regulated.
Myriad: Will the Clarity Act be signed into law in 2026? Click to make your prediction.Duffy, whose CME Group operates the world's largest futures exchange by volume, said he was "a lot concerned" about prediction markets and argued that some contracts are susceptible to manipulation.
"We're not a bunch of carnival barkers at a circus," Duffy said. "We are running the most envious markets in the world in the United States of America."
Duffy then took aim at the types of contracts Kalshi offers, mocking one in particular.
"There's another really economic contract that has been massively important for the United States. That's a Nathan's hot dog eating contest," Duffy said sarcastically.
He also questioned why Kalshi could offer a compute prediction market while CME's proposed compute contracts remained under review.
After Kalshi was called out by name, Lara challenged Duffy on CME's own history.
"I just wanted to respond since we were called by name here," Lara said. "I would actually have to ask Terry: Has CME ever had any issues with any market manipulation, any issues ever in its history?"
"If you'd like to have a debate, I'm happy to have a debate with you," Duffy replied.
"I'm just asking a simple answer to a question," Lara said.
"I have more people in my regulatory department than you have in your whole company," Duffy said, referring to the size of CME Group's operation compared to Kalshi.
"Maybe you should learn a bit about efficiency then," Lara fired back.
"Well, maybe you should learn about credible markets," Duffy replied, before moderator Walt Lukken stepped in.
Lara then argued that the problems Duffy raised were not unique to prediction markets.
"Every market has risk and every nascent market will have risks as well, and there have been issues in every single traditional market and every single exchange here, onshore and offshore," she said. "And I think the point of having regulation is that you find these issues, you address these issues, and there's a way to address them in a correct way.”
DraftKings CEO Jason Robins later urged participants to stop attacking each other's businesses.
"I would just ask everybody, both in this hearing and then also in future communications, to try to refrain from taking shots at each other's business models or decisions you may not 100% agree with," Robins said. "That doesn't advance the discussion."
Prediction Markets Face Regulatory Fight
Prediction markets allow their users to wager on the outcome of virtually any event through futures contracts that settle for $1, with the price of the contract implying the odds of the event. For instance, on Myriad—a prediction market operated by Decrypt’s parent company Dastan, the event contract for “Bitcoin highs in August” is priced at 59 cents on the $75K outcome, implying users believe there’s a 59% chance Bitcoin reaches $75,000 before the end of the month.
Myriad: Bitcoin next price move? Click to make your prediction.Prediction market platforms that operate in the United States, like Polymarket and Kalshi, have become the focus of a fight between federal regulators and states over whether contracts tied to sports, elections, and other real-world events are federally regulated derivatives or gambling products subject to state law.
CFTC Chair Selig has defended the agency's jurisdiction over federally regulated prediction markets, warning states challenging that authority in February.
"We will see you in court," Selig said in a video posted to X. The agency has since taken legal action against states seeking to regulate event contracts under their gambling laws.
In June, the CFTC proposed restrictions on certain contracts involving war or assassination and some sports proposition bets considered particularly susceptible to manipulation.
Earlier this month, nine Democratic senators urged Selig to prohibit wildfire event contracts, warning they could create incentives for arson, insider trading, and disaster profiteering.
Kalshi has faced legal setbacks in several states. Last week, a Washington judge ordered the company to stop offering contracts on sports, elections, politics, and other events in the state, finding it likely violated state gambling and consumer protection laws. Two days earlier, the CFTC ordered Kalshi to keep trading amid a separate dispute over New York's attempt to block its contracts.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
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
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.
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.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
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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XRP holders just got a new DeFi trick: using their tokens as collateral for options trading, all without ever sending them to a centralized exchange. Flare Network’s FXRP, a trustless wrapped version of XRP, is now accepted as collateral on Derive, the decentralized derivatives platform formerly known as Lyra.
The setup works through Flare’s FAssets protocol, which mints FXRP as a 1:1 over-collateralized representation of XRP. The underlying XRP stays parked on the XRP Ledger while the synthetic version moves freely across EVM-compatible chains.
How the plumbing works Flare’s FAssets system creates FXRP by locking XRP on the XRPL and minting an equivalent token on Flare’s network. The “over-collateralized” part means there’s more value backing each FXRP than the token itself is worth, providing a buffer against price swings.
Once minted, FXRP can be used across decentralized protocols just like any other ERC-20 token. On Derive, that means posting it as margin for options contracts and perpetual positions. The platform offers what it describes as institutional-grade trading features, including structured products that go beyond simple spot swaps.
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Blockscout data confirms FXRP activity on-chain, verifying that the integration is live and not just a roadmap promise.
The FAssets protocol launched FXRP on mainnet in September 2025, and a v1.3 update released in May 2026 simplified the minting process. The earlier version required more manual steps and higher friction, which limited adoption. The upgrade streamlined things enough that casual users, not just DeFi power users, could reasonably participate.
Beyond options: FXRP’s expanding footprint Derive isn’t the only venue where FXRP has gained traction. The token has been integrated into Morpho and Mystic, two lending and borrowing platforms, since early 2026. Starting in February 2026, lending markets began accepting FXRP as collateral for yield-generating strategies.
That means an XRP holder can mint FXRP, deposit it into a lending pool, earn yield, and simultaneously maintain exposure to XRP’s price movements. Layer on top of that the ability to write or buy options on Derive, and you’ve got a surprisingly complete financial toolkit built entirely around self-custody.
What this means for XRP and DeFi The Derive integration represents a broader pattern in crypto: assets from non-EVM chains finding ways to participate in Ethereum-adjacent DeFi through wrapped or synthetic representations. Bitcoin has wBTC and cbBTC. Dogecoin has wrapped versions on several chains. Now XRP has FXRP, with the added benefit of over-collateralization baked into the design.
The hedging use case is particularly relevant given XRP’s price history. Holders who weathered volatility without any ability to hedge, besides selling, now have a way to buy protective puts or generate income by writing covered calls.
The risk side of the equation deserves attention too. Over-collateralization protects against some failure modes, but it doesn’t eliminate smart contract risk, oracle failures, or liquidity crunches during extreme market stress. Wrapped assets add a layer of complexity, and each layer introduces potential points of failure. Users posting FXRP as options collateral are stacking multiple protocol risks on top of each other.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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
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.
New Institutional Backed Lending MarketFlare announced Monday that its wrapped version of XRP, FXRP, has been approved as collateral by Sentora, which manages a $280 million RLUSD lending pool.
The approval enables an isolated FXRP/RLUSD lending market on Morpho Blue, allowing users to deposit FXRP as collateral and borrow RLUSD while maintaining exposure to XRP’s price.
The lending market is permissionless, meaning users do not need to join a whitelist to participate.
The integration gives XRP holders a way to unlock liquidity without selling their tokens, expanding the cryptocurrency’s role in decentralized finance.
Adoption remains an early-stage challenge. Flare said around 155 million FXRP has been minted since launch, compared with its longer-term goal of bringing 5 billion XRP into its ecosystem over the next six months.
XRP Least Utilized Crypto AssetFlare expanded decentralized finance utility for the asset through a new institutional-backed lending market.
Currently, users must mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum using Stargate, deposit the asset into Morpho Blue and borrow RLUSD at their preferred loan-to-value ratio.
Flare said it is developing Smart Accounts that would allow XRP Ledger users to authorize the entire process directly from their wallets, while native XRPL-to-Ethereum minting is also under development.
Flare co-founder and CEO Hugo Philion told CoinDesk that XRP remains one of crypto’s largest assets but one of the least utilized in DeFi, adding that institutional approval of FXRP as Ethereum collateral is more meaningful than simply adding another bridge.
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Flare’s FXRP token has been approved as collateral in an institutionally curated Morpho vault on Ethereum, letting XRP holders borrow Ripple’s RLUSD stablecoin without selling. It is the first time an XRP-based asset has been accepted in a major on-chain lending market.
Summary
Flare’s FXRP, a bridged version of XRP on Ethereum, has been approved as collateral in Sentora’s RLUSD Main vault on Morpho, allowing XRP holders to borrow Ripple’s RLUSD stablecoin without selling their tokens. The integration is the first time an XRP-based asset has been accepted as collateral in an institutionally curated Ethereum lending market, a milestone for an asset that has been almost entirely absent from DeFi. XRP is the fourth largest cryptocurrency by market capitalization at approximately $70 billion, yet its utilization in on-chain lending, borrowing, and liquidity provision has been negligible compared to assets like ETH, WBTC, and stablecoins. Ripple has been building RLUSD as an enterprise-focused stablecoin since August 2024, securing NYDFS approval in December 2024 and a Mastercard settlement integration in July 2026. The Morpho Blue lending protocol uses isolated markets designed to contain risk if problems arise with a specific collateral asset, a structure that makes it possible to onboard newer assets like FXRP without exposing the broader protocol to systemic risk. Introduction XRP is one of the most widely held cryptocurrencies in the world. At roughly $70 billion in market capitalization, it trails only bitcoin, ether, and Tether’s USDT. It has millions of holders, deep liquidity on centralized exchanges, and a history that predates most of the DeFi ecosystem. And yet, until this week, there was no major lending market on Ethereum where XRP holders could borrow against their position.
The reason is infrastructure, not demand. XRP runs on the XRP Ledger, a separate blockchain with its own consensus mechanism and token standard. Ethereum-based DeFi protocols cannot natively interact with XRP. To use XRP in Ethereum lending markets, someone needs to build a bridge, create a wrapped token, and convince a risk team to underwrite it. That process took years for bitcoin (resulting in WBTC), and it has now happened for XRP through Flare’s FXRP token.
On August 3, Flare announced that FXRP has been approved as collateral in Sentora’s RLUSD Main vault on Morpho. XRP holders can now convert their tokens to FXRP, bridge to Ethereum, deposit as collateral, and borrow Ripple’s RLUSD stablecoin. This is not just a technical milestone. It is a test of whether XRP can become a productive DeFi asset after years of sitting idle in wallets.
How the FXRP to RLUSD lending flow works The process involves four steps, each handled by a different protocol.
Step one: XRP to FXRP conversion. XRP holders convert their native XRP tokens into FXRP, Flare’s bridged representation of XRP. Flare is a layer 1 blockchain that has built cross-chain data infrastructure, including the ability to create asset representations that can move between chains.
Step two: bridge FXRP to Ethereum. The FXRP token is bridged from Flare to Ethereum, where it becomes an ERC-20 token that Ethereum-based protocols can recognize and interact with.
Step three: deposit FXRP as collateral on Morpho. The Ethereum-native FXRP is deposited into Sentora’s RLUSD Main vault on Morpho Blue. Sentora, formerly known as IntoTheBlock, serves as the vault curator, meaning it reviews and approves which assets can be used as collateral. Sentora reviewed FXRP’s market behavior, oracle design, liquidity, and liquidation mechanics before granting approval.
Step four: borrow RLUSD. With FXRP deposited as collateral, the user borrows RLUSD, Ripple’s dollar-pegged stablecoin. The loan is overcollateralized, meaning the value of the FXRP deposit must exceed the value of the RLUSD borrowed. Because this is a loan against collateral and not a sale, the borrower retains exposure to XRP’s price movements.
Flare CEO Hugo Philion described the significance in terms of institutional credibility: “XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.”
Why XRP has been absent from DeFi XRP’s absence from DeFi is not accidental. It reflects three structural factors that have kept the asset isolated from the composable lending and borrowing ecosystem that Ethereum-based tokens take for granted.
Separate blockchain architecture. The XRP Ledger uses a different consensus mechanism (the XRP Ledger Consensus Protocol) and token standard than Ethereum. Unlike ERC-20 tokens, which can be natively deposited into any Ethereum smart contract, XRP requires a bridge and a wrapped representation to interact with Ethereum DeFi. Building that bridge securely takes time and auditing resources. The XRP Ledger was designed for payments, not for programmable smart contracts, which means the tooling and standards that Ethereum DeFi relies on do not exist natively on XRPL.
Regulatory uncertainty. The SEC’s lawsuit against Ripple, filed in December 2020 and not fully resolved until 2024, created a chilling effect on DeFi integration. Protocol teams and vault curators were reluctant to add XRP-based collateral when the token’s regulatory status was unclear. DeFi protocols have their own compliance considerations, and adding a token that the SEC claimed was an unregistered security was a risk most teams chose to avoid. The resolution of that case removed the legal overhang but did not immediately produce DeFi infrastructure.
Limited DeFi ecosystem on XRPL. The XRP Ledger has a built-in decentralized exchange and an automated market maker, but its DeFi ecosystem is small compared to Ethereum, Solana, or even newer L2 networks. Most DeFi activity, lending, borrowing, yield farming, and derivatives, happens on Ethereum and its rollups. For XRP holders to participate, they need to leave the XRPL, which until FXRP was not straightforward. The result is that a $70 billion asset has been almost entirely absent from on-chain credit markets, a gap that is disproportionate to its size and liquidity on centralized venues.
The WBTC parallel The closest analogy to what Flare is doing with FXRP is Wrapped Bitcoin (WBTC), which has been operating on Ethereum since 2019. WBTC lets bitcoin holders wrap their BTC into an ERC-20 token, deposit it as collateral on Aave, Compound, and MakerDAO, and borrow stablecoins against it.
WBTC demonstrated that non-native assets can become productive DeFi collateral if the bridge is trustworthy and the lending market is deep enough. At its peak, WBTC had over $15 billion in total value locked. It proved that bitcoin holders wanted to borrow against their positions rather than sell.
FXRP aims to replicate this model for XRP. The key differences are scale (WBTC had years of liquidity building, FXRP is just launching) and custody model (WBTC relies on a centralized custodian, BitGo, while Flare uses a decentralized bridge). Whether FXRP achieves WBTC-level adoption depends on whether XRP holders are willing to bridge their tokens and whether additional lending vaults beyond Sentora add FXRP as collateral. The bridging step is a genuine friction point: WBTC holders only needed to interact with a single custodian, while FXRP holders must navigate Flare’s cross-chain infrastructure before reaching Ethereum. Reducing that friction through improved tooling and wallet integrations is as important to adoption as the lending market itself.
What RLUSD is and why it matters here RLUSD is Ripple’s dollar-pegged stablecoin, designed for enterprise use cases including cross-border payments and institutional settlement. Ripple began testing RLUSD on Ethereum and the XRP Ledger in August 2024 and received approval from the New York Department of Financial Services in December 2024.
RLUSD is not trying to be USDC or USDT. Ripple has positioned it as a compliance-first stablecoin for regulated financial institutions. The Mastercard settlement integration announced in July 2026 is an example: Mastercard will support settlement of regulated stablecoins including RLUSD, USDC, and SoFi’s SoFiUSD. Zand Bank in the UAE began using RLUSD for cross-border payments in early 2026. Ripple has also expanded into Latin America, bringing Bitso’s Mexican peso-backed stablecoin MXNB onto the XRP Ledger in June 2026.
The FXRP/RLUSD lending integration adds a new use case: on-chain borrowing. XRP holders who want dollar liquidity without selling can now borrow RLUSD against their position. If RLUSD is accepted at more venues and payment rails, the utility of borrowing it increases. This creates a flywheel where RLUSD adoption in payments makes RLUSD borrowing more attractive, which drives more FXRP deposits, which deepens the lending market.
The stablecoin landscape itself is shifting rapidly. Circle recently brought USDC to the XRP Ledger, meaning XRPL now supports both RLUSD and USDC natively. This multi-stablecoin approach on XRPL means XRP holders have more options for accessing dollar liquidity, and the FXRP/RLUSD lending market on Ethereum adds yet another path. For Ripple, the strategic play is to make RLUSD the default borrowing currency for XRP-collateralized loans, creating a use case that USDC does not serve.
BREAKING: XRP Ledger sustains over 140 TPS and blocks with up to 987 transactions during today’s big activity wave, maintaining cent-level fees and 3-4 second settlement pic.twitter.com/yaAyCH4wGy
— crypto.news (@cryptodotnews) April 10, 2026 Why Morpho Blue’s isolated market design matters Morpho Blue is a lending protocol that uses isolated markets instead of the shared pool model used by Aave and Compound. In a shared pool, all depositors share risk: if one collateral asset fails, losses can spread across the entire protocol. In Morpho Blue’s isolated markets, each collateral-borrow pair operates independently. A problem with FXRP would affect only the FXRP/RLUSD market, not other lending pairs on the protocol.
This design is what made it possible for Sentora to approve FXRP as collateral. A shared pool protocol would likely have rejected a newly bridged token with limited on-chain history. Morpho Blue’s isolation means the risk is contained, and the vault curator (Sentora) bears the responsibility for evaluating it.
Sentora’s CTO Jesus Rodriguez described the approval as a deliberate expansion of on-chain credit: “XRP is one of crypto’s largest and most liquid assets. Yet it remains surprisingly underused in onchain credit. That changes today.” The framing is significant: this is not a DeFi experiment. It is an institutional risk team making a calculated underwriting decision.
The isolation model also creates a natural price discovery mechanism for FXRP risk. Because each vault has its own interest rate curve determined by utilization, lenders are effectively pricing the specific risk of FXRP collateral rather than having that risk diluted across a shared pool. If the market perceives FXRP bridge risk as elevated, rates in FXRP-collateralized vaults will rise relative to vaults backed by native Ethereum assets. This transparency gives both lenders and borrowers real-time information about how the market values the bridge and custody mechanisms that underpin FXRP.
The $70 billion question XRP has roughly $70 billion in market capitalization. If even 5% of that value migrates into DeFi collateral positions (as happened with bitcoin through WBTC), the result would be $3.5 billion in new collateral available for borrowing. At 10%, it would be $7 billion.
For context, Morpho Blue’s total value locked across all markets is roughly $4 billion. A meaningful flow of XRP into the protocol would make it one of the largest collateral assets on the platform. Whether this happens depends on XRP holder behavior, FXRP bridge trust, and RLUSD utility. But the infrastructure is now in place for the first time.
The peso-backed stablecoin integration on XRPL through Bitso and the USDC expansion to XRP Ledger through Circle show that Ripple is building a multi-stablecoin ecosystem around XRP. The FXRP/RLUSD lending market extends this ecosystem into Ethereum DeFi, bridging two worlds that have historically operated separately.
The comparison to Ethereum’s DeFi trajectory is instructive. When WETH first became available as collateral on Aave and Compound, it took approximately 18 months before the cumulative value locked in ETH-collateralized lending exceeded 5% of ETH’s market capitalization. XRP faces a steeper adoption curve because its holder base skews more retail, with a lower proportion of technically sophisticated users who are comfortable with bridge mechanics and vault management. The institutional channel through Sentora’s curated vaults could accelerate adoption, but institutional allocators typically require six to twelve months of live market data before committing significant capital.
What scale adoption would look like The WBTC adoption curve provides a template for projecting what FXRP could achieve over a multiyear period. When WBTC launched in January 2019, it began with a few million dollars in total value locked. It took roughly 18 months to reach $1 billion, and another year to reach $10 billion as DeFi activity surged through 2020 and 2021. At its peak in late 2021, WBTC held over $15 billion in total value locked across Aave, Compound, and MakerDAO, representing roughly 1.5% of bitcoin’s market cap at the time.
FXRP starts from a different baseline. XRP has no DeFi history to build on, while WBTC launched when bitcoin holders already understood the concept of using cryptocurrency as collateral and had watched earlier DeFi protocols develop lending markets. But XRP’s size, $70 billion in market capitalization, means even a small adoption rate translates to significant absolute TVL. If FXRP captures 0.5% of XRP market cap in collateral, that is $350 million. At 1%, $700 million. At the WBTC peak rate of roughly 1.5%, it would be more than $1 billion.
For Morpho Blue, these numbers are material. The protocol’s total value locked across all markets is roughly $4 billion. A $500 million FXRP collateral pool would represent more than 10% of Morpho’s total market size, making FXRP a top-tier collateral asset and attracting market makers, liquidation bots, and additional vault curators who see FXRP liquidity as worth their infrastructure investment.
The institutional framing matters here. Sentora’s approval is not just a permission to participate; it is a credentialing signal. DeFi protocols are understandably skeptical of bridged assets because bridge exploits have caused billions in losses. An institutional risk team reviewing oracle design, liquidity profiles, and liquidation mechanics before granting approval lowers the barrier for the second and third curator approvals. Morpho’s isolated market architecture means curators can observe how the FXRP/RLUSD market behaves before committing their own vaults, using Sentora’s early data as evidence.
Ripple’s existing institutional relationships give FXRP a distribution channel that WBTC did not have at launch. RLUSD is already integrated with Mastercard settlement, live in Zand Bank UAE, and present on the XRP Ledger alongside USDC. If Ripple’s enterprise payment partners begin borrowing RLUSD against FXRP positions for working capital or treasury management, the institutional use case extends beyond retail speculation. A $10 million working capital facility backed by XRP collateral, accessed through the FXRP bridge and Morpho, is precisely the kind of product that Ripple’s enterprise sales network can take to existing RLUSD clients. That commercial distribution path distinguishes FXRP from purely retail-driven bridged tokens and gives the collateral market a demand source that does not depend on DeFi sentiment cycles.
The risk of bridge-based DeFi collateral The FXRP model introduces risks that native Ethereum tokens do not carry. Every step in the flow, XRP to FXRP conversion, bridging from Flare to Ethereum, oracle pricing, and Morpho vault liquidation, represents a potential failure point.
Bridge exploits are the most expensive category of smart contract hacks in crypto history. Cross-chain bridges have caused over $4 billion in losses since 2021, including the Ronin ($624 million), Wormhole ($326 million), and Nomad ($190 million) exploits. Each of these hacks targeted the trust assumptions that allow assets to move between chains. The FXRP bridge uses Flare’s decentralized infrastructure, which is architecturally different from the compromised bridges, but the risk category is the same: any vulnerability in the bridge could result in unbacked FXRP tokens on Ethereum, which would make the Morpho collateral worthless.
Oracle risk is the second concern. The Morpho vault needs an accurate, manipulation-resistant price feed for FXRP to trigger liquidations at the right time. If the oracle diverges from the true market price of XRP, two outcomes are possible: premature liquidations that harm borrowers, or delayed liquidations that leave lenders with bad debt. Sentora reviewed the oracle design before approving FXRP, but the limited on-chain history of the token means the oracle has not been tested under extreme market conditions.
Liquidity risk is the third factor. If a borrower’s FXRP collateral needs to be liquidated, there must be sufficient FXRP liquidity on Ethereum for liquidators to sell the seized tokens. A thin FXRP market could result in liquidators being unable to recover the full value of the loan, creating losses for RLUSD lenders. This is a bootstrapping problem: liquidity improves as adoption grows, but adoption depends on liquidity being sufficient from the start.
Historical precedent suggests bridge exploits follow a pattern. The Ronin bridge lost $625 million in March 2022 when attackers compromised validator keys. The Wormhole bridge lost $320 million a month earlier through a signature verification bypass. In both cases, the underlying assets on the source chain were unaffected, but the wrapped representations on the destination chain became worthless. For FXRP holders using Morpho vaults, a Flare bridge compromise would mean their collateral evaporates while their loan obligations remain. The asymmetry between borrower and lender risk in a bridge failure scenario is one of the least discussed aspects of cross-chain DeFi collateral.
What would invalidate this thesis The bullish read is that FXRP opens a new chapter for XRP in DeFi. The bearish read is that XRP holders have shown little interest in DeFi historically, and a bridged token on an unfamiliar protocol will not change that behavior.
If FXRP deposits remain below $50 million after six months, the integration was a technical success but a commercial failure. If the FXRP bridge suffers a security incident, trust in the model collapses. If RLUSD itself fails to gain traction beyond a few institutional partnerships, the borrowing side of the market dies. And if XRP’s price drops significantly, FXRP collateral positions get liquidated, creating negative feedback loops that discourage further deposits.
Regulatory risk adds another dimension. If regulators classify FXRP as a derivative or synthetic asset rather than a direct representation of XRP, the compliance burden on institutional vaults could make the product uneconomical. The SEC has not issued guidance on wrapped or bridged tokens as a distinct category, and enforcement actions in adjacent areas suggest the regulatory framework remains uncertain. A single enforcement action against a bridged asset product could freeze institutional participation across the entire category.
What to watch FXRP total value deposited on Morpho. The single most important metric. If deposits reach $500 million within six months, XRP holders are adopting DeFi collateral use cases. If deposits stall below $100 million, adoption has failed.
RLUSD circulating supply growth. Track whether the lending integration drives new RLUSD minting. If borrowing demand increases RLUSD supply, the flywheel is working.
Additional vault curators adding FXRP. Sentora is the first. If other curators like Gauntlet, Block Analitica, or Steakhouse Financial add FXRP vaults, the collateral is gaining broader institutional acceptance.
Flare bridge security. Any exploit or significant downtime on the FXRP bridge would damage trust in the model. Track audit reports, bridge volume, and incident history.
XRP DeFi TVL relative to market cap. Currently near zero. Bitcoin’s WBTC TVL as a percentage of BTC market cap reached roughly 1.5% at peak. If FXRP reaches even 0.5% of XRP market cap ($350 million), it would represent meaningful DeFi adoption.
Frequently asked questions What is FXRP? FXRP is Flare’s bridged version of XRP that operates as an ERC-20 token on Ethereum. It allows XRP holders to use their tokens in Ethereum-based DeFi protocols without selling the underlying XRP.
What is RLUSD? RLUSD is Ripple’s dollar-pegged stablecoin, designed for enterprise use cases including cross-border payments and institutional settlement. It was approved by the New York Department of Financial Services in December 2024 and launched on Ethereum and the XRP Ledger.
How does XRP lending on Morpho work? XRP holders convert XRP to FXRP on Flare, bridge FXRP to Ethereum, deposit it as collateral in Sentora’s RLUSD vault on Morpho Blue, and borrow RLUSD against their position. The loan is overcollateralized and retains the borrower’s exposure to XRP price movements.
Why has XRP been absent from Ethereum DeFi? XRP runs on a separate blockchain (the XRP Ledger) that cannot natively interact with Ethereum smart contracts. The SEC lawsuit against Ripple also discouraged DeFi protocol teams from integrating XRP-based assets until the case was resolved.
What is Morpho Blue? Morpho Blue is a lending protocol that uses isolated markets instead of shared pools. Each collateral-borrow pair operates independently, containing risk and making it possible to onboard newer assets like FXRP without exposing the broader protocol.
How is FXRP different from WBTC? Both are bridged representations of non-Ethereum assets. WBTC uses a centralized custodian (BitGo) to hold the underlying bitcoin, while FXRP uses Flare’s decentralized bridge. WBTC has years of liquidity history and widespread DeFi integration; FXRP is just launching.
What is Sentora’s role? Sentora (formerly IntoTheBlock) is the vault curator that reviewed and approved FXRP as collateral for the RLUSD lending market on Morpho. Curators evaluate collateral assets for market behavior, oracle design, liquidity, and liquidation mechanics before granting approval.
Could this model expand to other assets? Yes. The FXRP/Morpho model could be replicated for other non-Ethereum assets that have large market capitalizations but limited DeFi presence. The success or failure of the FXRP integration will likely influence whether curators approve similar bridged tokens in the future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The information presented is based on publicly available reports and announcements as of August 3, 2026. Always conduct your own research before making investment decisions.
FXRP clears its first institutional lending vault on EthereumXRP holders have a new way to put their assets to work. Flare's (@FlareNetworks) FXRP is now approved as collateral in Sentora's RLUSD Main vault on @Morpho, marking the first time a version of XRP has been accepted as collateral in an institutionally managed lending vault on Ethereum.
The mechanics are straightforward. Users mint FXRP on Flare, bridge it to Ethereum through Stargate, deposit FXRP into the lending market on Morpho Blue, and borrow RLUSD against their collateral. Throughout the process, XRP exposure stays intact.
The lending market sits inside Sentora's RLUSD Main vault, which holds roughly $280 million in RLUSD deposits, making it the largest institutionally managed RLUSD vault on Ethereum.
Sentora said it reviewed FXRP's market behaviour, oracle design, liquidity, and liquidation mechanics before approving it as collateral. Flare CEO Hugo Philion (@HugoPhilion) framed that review as meaningful in itself, noting that "XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing."
A WBTC moment for XRPThe model draws a direct comparison to Wrapped Bitcoin (WBTC), which lets Bitcoin holders use their BTC in Ethereum-based DeFi without selling. FXRP is designed to do the same for XRP, giving holders access to Ethereum lending markets.
The timing aligns with broader momentum behind Ripple's stablecoin. RLUSD operates on both the XRP Ledger and Ethereum, with the dual-chain design tapping into Ethereum's DeFi ecosystem while leveraging XRPL's fast, low-cost payment network. RLUSD is issued under a NYDFS Trust Charter.
The XRP community has historically had limited access to sophisticated DeFi strategies, but Flare has been building the foundations for XRPFi through FXRP and a growing set of integrations. Flare is also working on direct FXRP minting from the XRP Ledger to Ethereum, which would remove the separate bridge step and make the process faster.
For now, the infrastructure is in place. One of crypto's largest assets has spent years sitting idle. Plugging it into onchain credit is how that changes.
Sources
Decrypt: XRP Holders Can Now Borrow Ripple's RLUSD on Ethereum Without Selling Their Crypto
AltcoinBuzz: FXRP Becomes First XRP Collateral for RLUSD Loans on Ethereum
Flare Network: First-ever modular lending for XRP debuts on Flare via Morpho and Mystic
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.
AUTHOR
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.
Amid the ongoing downtrend, the Flare (FLR) token appears to be following the same pattern XRP witnessed before its 2017 rally.
Flare (FLR) remains under pressure as the broader crypto market continues its prolonged decline. Despite this weakness, its long-term chart has started to resemble the pattern XRP formed before its historic rally during the 2017 bull market.
This pattern involves a series of lower highs that XRP recorded before its massive breakout. While matching chart patterns do not guarantee the same outcome, the similarities raise questions about whether FLR could eventually stage a comparable move if market conditions improve.
XRP Built a Series of Lower Highs Before Its Historic Rally For context, XRP produced one of the biggest rallies in crypto history during the 2017 bull cycle. Specifically, the token climbed from $0.005 in March 2017 to $3.31 in January 2018, delivering a remarkable 66,100% gain in less than a year.
However, before the rally, XRP spent several years forming lower highs. The asset first climbed to $0.0435 in December 2013, marking the peak of its first major bull run.
XRP Pattern Before 2017 Run It later dropped during the following bear market before recovering in November 2014. However, this rebound only carried XRP to $0.0280 by December 2014, leaving it below the $0.0435 high reached a year earlier.
After peaking at $0.0280, XRP pulled back again. When it recovered in December 2015, it reached only $0.0091, creating another lower high compared to the December 2014 peak.
From there, XRP entered a steady decline that pushed the price down to $0.005 in March 2017, where it found its bottom. This low marked the beginning of the token’s historic rally to $3.31, which rewarded investors who held through the long downturn.
Flare Has Traced a Similar Path Flare now appears to be following a similar pattern. Notably, the token climbed to about $0.048 in February 2024 before meeting resistance and pulling back during a broader market correction.
As the crypto market recovered in November 2024, FLR also moved higher. However, the recovery reached only $0.036 by December 2025, creating a lower high compared to the $0.048 peak recorded in February 2024.
Flare Following the Same Pattern After reaching $0.036, FLR entered another correction that lasted until April 2025. The token then started another recovery but managed to rise only to $0.0287 in September 2025, forming yet another lower high.
Since reaching $0.0287, FLR has remained in a broader market downturn that has continued to push its price lower. The token now trades around $0.006, which brings it close to the $0.005 level where XRP bottomed before its explosive rally in 2017.
Similar Patterns Do Not Guarantee Similar Results However, it is important to note that the similarities between the two charts do not guarantee that FLR will repeat XRP’s historic performance.
The current market environment also differs from the one XRP experienced in 2017. The altcoin market has become much more crowded, with thousands of additional tokens competing for investor capital. Because of that, attracting enough money to fuel a 66,000% rally may be much more difficult for Flare.
However, FLR would not need to match XRP’s full performance to deliver significant returns. If the token achieved just one-quarter of XRP’s historic rally, it would still gain about 16,500% from its current price of $0.006. Such a move would push FLR to a new all-time high of nearly $1.
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.
A fraudulent website impersonating Flare Network drained 3.4 million $XRP from 71 investors in South Korea in just eight days last October, the Seoul Metropolitan Police Agency confirmed on July 30. At the time of the theft, the stolen tokens were worth approximately $8.5 million, though investigators say the full scale of the operation may be far larger.
How the scam worked According to the Seoul Metropolitan Police Agency's Cyber Investigation Unit, the suspects created a fake website called Fxrpntwork.com between October 16 and October 23, 2025. The group launched the fake website just after the FXRP token launch, exploiting the genuine project's name and early momentum to lend it credibility. Police records show the operators promised guaranteed principal and monthly returns of 1.5% to 1.8%.
To make the scheme look real, the group flooded the internet with fake promotional content across Naver blogs, Tistory, Wikipedia pages, online news articles, and YouTube videos, some featuring paid actors pretending to review the platform. Investors were instructed to withdraw XRP from South Korean exchanges, move funds through overseas trading platforms, and deposit them into wallets controlled by the group. This method helped avoid South Korea's strict monitoring systems for large crypto transfers. Once the funds had accumulated, the site went offline on October 23 and the operators disappeared.
Investigation and arrests The investigation began after an overseas cryptocurrency exchange reported suspicious XRP movements to South Korean authorities. Investigators traced 27.3 billion won ($18.8 million) through wallets linked to the group and immediately froze 17.3 billion won of those assets on overseas exchanges. Another roughly 10 billion won moved during the probe and remains unaccounted for, which could indicate additional victims beyond the 71 identified.
Two men were detained on aggravated fraud charges and a third accomplice remains at large at an unknown overseas location. Seoul police obtained an arrest warrant and requested an Interpol Red Notice for the fugitive. Authorities are also pursuing a broader cleanup of crypto-related crime in the country. "We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy," a Seoul police official said, urging investors to verify any investment claims before depositing funds.
Sources:
Benzinga: XRP Scam in South Korea Defrauds Investors of $19 Million
CoinCodex: Fake Flare Network Site Drains $8.5M Worth of XRP
GNCrypto News: Fake Flare Staking Site Stole $8.5M in XRP, Seoul Police Say
