XRP holders now have a way to earn yield without selling their tokens or navigating complex DeFi strategies, with data-centric blockchain Flare’s EarXRP, a fully on-chain yield product denominated in XRP.
The new vault allows users to deposit FXRP, a one-to-one representation of XRP on Flare, and earn returns that are compounded back into XRP, according to a press release. Instead of juggling multiple protocols, users make a single deposit and receive winXRP, a receipt token that tracks their share of the vault and its cumulative performance.
Behind the scenes, the vault distributes funds through a combination of strategies, including XRP staking, liquidity provision, and carry trades that borrow low-cost stablecoins and deploy them into higher-yield venues.
The launch is important because currently only a small fraction of the XRP supply is used in DeFi, despite the size and liquidity of the token. By maintaining returns denominated in
For Flare, the vault acts as a liquidity engine. Converting idle XRP into productive capital increases on-chain activity, deepens markets, and strengthens Flare’s FAssets system, which brings XRP to smart contract environments.
