Flare Network helps push XRP deeper into decentralized financing (DEFI) with FXRP — a full collateral, non-parenting authority of XRP on the Songbird and a growing package of infrastructure now drawing interest from retail and institutional players, according to a messari report.
Flare validates off-chain data without external middleware. The framework ensures fassets, such as FXRP, and enables transverse chain transactions, which is the key to building a decentralized economic ecosystem around XRP.
In the protocol layer, FXRP Minting uses a multi-collateral system that brings together stableecoins, FLR and agent funds to maintain a 2x or greater over-collateralization relationship. All participating agents are kyc’d and monitored on-chain, adding a layer of observance unusually in the defi bridges.
While FXRP is currently live on Songbird (Flares Canary Network), Mainnet Rollout is reportedly near. In Blockchain Parlance, a Canary Network is designed to test new features and protocols before they are implemented for a main network, but act as a fully functional, live network (as opposed to a test network where assets have no economic value).
The interest is already gaining: Merchant Platform Stays, which owns 1.8 billion XRP, is looking to integrate FXRP. Separately, the NASDAQ note has been obliged $ 100 million in XRP for implementation on Flare Network.
Next in the line is floating stacking. Firelight Protocol plans to start stxrp, a floating stack for fxrp.
Modeled by Steth, the token will be able to be transferred across Flares Defi apps and allow the owners to maintain liquidity while earning rewards, which further extends XRP’s use case on the network.
If the launch plays out as the design, Flare can finally bring the defi tool to one of Crypto’s most held but under -utilized, tokens.
“While XRPL has original features such as escrows, checks and payment channels, it cannot implement complex smart contracts,” Messari analysts said in the report.
“Fassets Bridge over this hole by allowing XRP token holders to participate in a complete range of defi -activities (alias XRPFI), such as lending, borrowing, dividends, and liquidity supply, without sacrificing detention of their underlying assets. This is especially important for XRP, which has historically been limited in its defi- The Analysts added.
For institutions, XRPFI offers a way to generate dividends on their XRP holdings, which have traditionally been held as static assets.
