Flare Launches earnXRP to Let XRP Holders Earn Yield Without Selling Tokens
Flare has introduced earnXRP, an on-chain XRP-denominated yield product designed to enable XRP holders to earn yield without selling their tokens or engaging in complex DeFi procedures.
Users deposit FXRP, which is a 1:1 representation of XRP on the Flare network, into a vault and receive earnXRP receipt tokens. These receipt tokens represent their share and accrued yield within the vault.
The returns generated are compounded back into XRP through the vault’s mechanism.
The vault employs a strategy mix that includes XRP staking, liquidity provision, and carry trades that borrow low-cost stablecoins to deploy capital into higher-yield venues.
Yields are denominated in XRP to avoid exposure to stablecoins and to reduce active trading risks for holders.
Acting as a liquidity engine, the vault increases on-chain activity, deepens markets, and strengthens Flare’s FAssets system, thus bringing XRP into smart contract environments.
Currently, only a small fraction of XRP’s supply is utilized in DeFi, and earnXRP aims to enhance XRP DeFi utilization by offering a simple yield option denominated in XRP.
