Despite its massive popularity, the XRP has remained more out of decentralized finance (DEFI) due to the technical limitations of the XRP Ledger (XRPL).
XRPFI, a defi ecosystem centered on XRP (XRP), aimed at narrowing that space. It uses the bridal and intelligent technology of the Flare Network contract to bring the XRP to the kingdom of programmed financial.
The Flare Network, a full-stack layer-1 blockchain designed for intensive data applications, serves as an important bridge that connects non-smart-contract assets such as XRP to the Defi Ecosystem.
In the middle of flare infrastructure are the fassets, a system that creates completely collateralized representations of these possessions. A well -known example is the FXRP, a wrapped version of the XRP that gives the holders to deploy their XRP to defi protocols within the Flare network.
Through the staking FXRP, the holders receive the STXRP, a liquid staking token that represents a claim to the staked FXRP.
“This setup allows XRP holders to unlock indigenous people such as staking harvest in a property that otherwise does not support staking, enabling passive income without sacrificing liquidity,” Max Luck, head of growth in Flare, told cointelegraph.
Related: Developing Defi’s future in Flare’s data-driven ecosystem: Father Recap
Institutions show the growing interest in XRPFI: the digital money platform that promotes, holding more than 1.8 billion XRP, signed plans to engage in the fassets ecosystem, while NASDAQ Vivopower listed recently announced A $ 100 million XRP expansion in Flare, emphasizing how major players prove and accelerate the XRPFI momentum.
With the XRP market capitalization of over $ 130 billion, directing even a small portion of that liquidity to the defi can unlock a significant new source of capital for a broader ecosystem. Flare technology expands the XRP utility, encouraging greater participation from both institutional investors and retail holders.
Liquid Staking will come to the XRP ecosystem by launching STXRP
Liquid staking is set to make its debut on the XRP ecosystem with the launch of the STXRP in the firelight protocol, which is boosted by Flare. Similar to liquid staking token steth (Steth) for staked eth (Eth) Offocols like Lido, Firelight will allow users to stake FXRP and receive STXRP, a liquid token that can be used throughout the growing Flare ecosystem.
The process works by depositing the FXRP with the launch of the firelight firelight, which mints STXRP in a 1: 1 ratio. These ERC-20 tokens are fully transferred and can be used throughout the decentralized exchange, lending market, and other protocols that make up the yield.
Essentially, the underlying FXRP will remain staked on safe service networks, which will help to secure decentralized protocols in many ecosystems while potentially earning rewards for users.
As STXRP holders, users can also earn fire points, which may influence future rewards distribution. In the long run, this dynamic can increase STXRP composability within the XRPFI ecosystem, which enables its use as collateral, liquidity or an asset carrying yield to a wide range of DEFI applications.
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