Flare Network helps to push XRP more deeply in decentralized finance (DEFI) with FXRP – an undefined and undertaken representation of XRP on Songbird – and an increasing suite of infrastructure now arouse an interest in retail and institutional players, according to a Messari report.
Flare validates out chain data without external middleware. The framework secures the facts, such as FXRP, and allows transversal transactions, which is the key to building a decentralized financial ecosystem around XRP.
With the protocol layer, FXRP Mint uses a multi-collateral system, pooling stablescoins, FLR and agent funds, to maintain an over-collateralization ratio of 2x or more. All participating agents are KYC and monitored on the chain, adding a rare layer of conformity in the DEFI bridges.
While FXRP is currently live on Songbird (Flare’s Canary Network), Mainnet’s deployment would be close. In blockchain’s language, a canary network is designed to test new features and protocols before being deployed on a main network, but works as a fully functional live network (unlike a testnet, where assets have no financial value).
The interest is already resuming: the sustained trading platform, which contains 1.8 billion XRP, seeks to integrate FXRP. In addition, Vivopower, listed in Nasdaq, has engaged $ 100 million in XRP for deployment on the Flare network.
Then the liquid sticking. Firelight Protocol plans to launch STXRP, a derivative of liquid fxRP.
Modeled after Steth, the token will be transferable to Flare DEFI applications and will allow holders to maintain liquidity while earning rewards, further expanding the use of XRP on the network.
If the launch takes place as designed, Flare can finally bring a DEFI utility to one of the most held, but underused tokens of crypto, but underused.
“Although the XRPL has native functions such as the separats, checks and payment channels, it cannot implement complex intelligent contracts,” said Messari analysts in the report.
“The facts fill this gap by allowing XRP tokens to participate in a full range of DEFI activities (AKA XRPFI), such as loans, borrowing, agriculture performance and liquidity provisioning, without sacrificing their underlying assets. It is particularly important for the adoption of XRP, which has historically been limited in its DEFI applications despite its substantial commercial capital and substantial commercial capital.
For institutions, XRPFI offers a means of generating a return on their XRP participations, which have traditionally been considered static assets.
