XRP Holders Now Earn DeFi Yields Without Selling

Flare Network and Enosys have launched the first XRP-backed stablecoin on the Flare ecosystem, marking a significant step in expanding XRP’s utility within decentralized finance (DeFi). The stablecoin, built on Enosys Loans—a decentralized lending protocol—enables XRP holders to mint a trustless, overcollateralized stablecoin without selling their assets. This innovation leverages Flare’s FXRP (XRP on Flare) and wrapped Flare tokens (wFLR) as initial collateral, with plans to integrate stXRP (liquid staked XRP) in the future. The protocol operates via Collateralized Debt Positions (CDPs), where users deposit crypto assets to mint stablecoins pegged to the U.S. dollar, maintaining overcollateralization to ensure system solvency Enosys Launches First XRP-Backed Stablecoin on Flare Network^[1].

The protocol’s design integrates the Flare Time Series Oracle (FTSO), a decentralized price feed system, to ensure reliable and tamper-resistant pricing for collateral assets. Unlike centralized oracles, FTSO aggregates data from multiple signal providers, enhancing security and censorship resistance. This feature is critical for stablecoin operations in volatile markets, aligning economic incentives between borrowers, stakers, and oracle participants. The stability pool, a key component of the system, absorbs risks by backing issued debt and rewarding participants with interest, minting fees, and liquidation bonuses Enosys Launches First XRP-Backed Stablecoin on Flare Network^[1].

Enosys Loans introduces user-defined interest rates, a departure from fixed-rate models in protocols like Liquity V2. Borrowers can choose between higher APRs for greater resilience or lower rates with increased risk, creating a dynamic borrowing environment. This flexibility, combined with Flare’s modular architecture, positions the stablecoin as a hybrid of Ethereum’s proven CDP mechanisms and Flare-native innovations. The protocol also plans to expand collateral support to additional FAssets, further diversifying its liquidity layer Enosys Launches First XRP-Backed Stablecoin on Flare Network^[1].

To incentivize early adoption, Enosys will distribute rFLR tokens to users participating in key activities. These include minting stablecoins, staking them in the stability pool, and providing liquidity on decentralized exchanges (DEXs). The multi-tiered incentive model mirrors successful strategies from projects like Aave and MakerDAO, aiming to rapidly grow total value locked (TVL) and foster user retention. Temporary elevated yields are expected as the ecosystem scales Enosys Launches First XRP-Backed Stablecoin on Flare Network^[1].

The launch coincides with a milestone for the XRP Ledger: accounts surpassing 7 million, signaling growing adoption. By enabling XRP holders to earn yield without selling their tokens, the stablecoin enhances XRP’s role in DeFi, aligning with Flare’s vision of a permissionless liquidity layer. CEO Hugo Philion highlighted that the stablecoin could facilitate transactions for NFTs and broader digital assets, positioning XRP as a foundational component of a decentralized financial infrastructure Flare Unveils First XRP-Backed Stablecoin, Boosting XRP’s Utility^[2].

Enosys and Flare’s collaboration underscores XRP’s evolving utility beyond passive holding. With stXRP integration, users can simultaneously earn staking rewards and leverage their assets in DeFi, mirroring Ethereum’s staking and lending dynamics. This dual functionality strengthens XRP’s composability, enabling strategies such as leverage trading and real-world asset bridging. Analysts note that the protocol’s focus on trustless mechanisms and decentralized governance could position it as a core stablecoin layer for the Flare ecosystem Enosys Launches First XRP-Backed Stablecoin on Flare Network^[1].