Flare Rolls Out 'earnXRP' Vault, Letting XRP Holders Earn Yield Without Selling
Flare has launched earnXRP, an on-chain vault allowing XRP holders to earn yield without selling their tokens or using complex DeFi strategies. Here's how it works.
A New Yield Avenue for XRP
Data-focused blockchain has launched , a fully on-chain yield product that allows holders to generate returns without selling their tokens or navigating complex DeFi protocols. The product, announced on , aims to turn one of the market's largest but most underutilized crypto assets into productive capital.
According to a press release, users can deposit FXRP—a representation of on the network—into a single vault. The returns are then compounded directly back into .
How It Works: A Simplified DeFi Strategy
The vault abstracts away the complexity typical of yield farming. Instead of managing multiple positions, users make a single deposit and receive a receipt token that tracks their share of the vault's growing value. Behind the scenes, the vault allocates capital across a mix of strategies, including staking, liquidity provision, and carry trades that leverage low-cost stablecoins.
This matters because currently, only a tiny fraction of 's massive supply is active in DeFi. By keeping returns denominated in , the product is designed to appeal to long-term holders who seek yield but want to avoid exposure to stablecoins or the risks of active trading.
A Liquidity Engine for the Flare Ecosystem
For , the vault is a strategic move to boost its own ecosystem. By turning idle into active capital, it increases on-chain activity, deepens liquidity in its markets, and strengthens its FAssets system, which is designed to bring assets like into smart contract environments.
XRP has long been viewed as a payments asset rather than a yield-bearing one. The launch of earnXRP signals a shift, potentially unlocking a multi-billion dollar pool of dormant capital for the DeFi space. This could not only significantly boost Flare's Total Value Locked (TVL) but also intensify the competition among Layer 1s to attract liquidity from major, established crypto assets.
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