Flare Network helps XRP to push deeper into decentralized finances (Defi) with FXRP-a fully collateral, non-complainant of XRP on Songbird and a growing series of infrastructure that now attracts interest from both retail and institutional players, according to a Messari report.
Flare validates off-chain data without external middleware. The framework protects fassets, such as FXRP, and makes cross-chain transactions possible, which is the key to building a decentralized financial ecosystem around XRP.
For the protocoll layer, FXRP-Minting uses a multi-collateral system, Pooling Stablecoins, FLR and agent funds to maintain a 2x or larger over-collateralization ratio. All participating agents are KYC’D and monitors on-chain, making a layer of compliance unusual in Defi Bridges.
While FXRP is currently live on Songbird (Flare’s Canary Network), the Mavet -Roll is reportedly nearby. In blockchain -language use, a Canary network is designed for testing new functions and protocols before they are implemented in a main network, but works as a fully functional, live network (in contrast to a test network, where assets have no financial value).
The interest is already picking up: Uphold trading platform, with 1.8 billion XRP, wants to integrate FXRP. Separately, Nasdaq-listed VIVOPOWER has committed $ 100 million to XRP for implementation on the Flare Network.
The next in line is liquid bet. Firelight protocol is planning to launch STXRP, a derivative for the use of liquid for FXRP.
Modeled after Steth, the token can be transferable over the Defi apps of Flare and holders can retain the liquidity while they earn rewards, which extends the use of XRP on the network.
If the launch takes place as designed, Flare can finally bring Defi tools to one of the most held, but under -utilized tokens of Crypto.
“Although the XRPL has native functions such as escrows, checks and payment channels, it cannot implement complex smart contracts,” said Messari analysts in the report.
“Fassets bridge this gap by allowing XRP to participate in a full range of Defi activities (AKA XRPFI), such as loans, borrowing, yields of agriculture and liquidity provision, without sacrificing the custody of their underlying assets.
For institutions, XRPFI offers a way to generate yields on their XRP companies, which are traditionally considered static assets.