The product enables users to deposit FXRP, a wrapped version of XRP on Flare, into a vault that deploys capital across various on-chain strategies.
XRP News
A new yield product called earnXRP has launched to expand the XRPFi ecosystem by putting idle XRP to work on-chain. Upshift Finance, Clearstar and Flare Network jointly created the product to allow users to earn yield denominated in XRP.
The product enables users to deposit FXRP, a wrapped version of XRP on Flare, into a vault that deploys capital across various on-chain strategies. Only 0.1% of XRP supply is utilized in DeFi despite the token being the fifth-largest cryptocurrency by market capitalization, according to Ethan Luc, growth lead at Upshift.
EarnXRP targets yields ranging from 4% to 10%, depending on vault size. For vaults between $1 million and $10 million, target yields of 7% to 10% are reasonable, said Jashiel Alamo, head of research at Clearstar Labs. Larger vaults growing to $50 million to $100 million would likely see yields compress to 3% to 4%.
Tokenization platform Midas launched a similar product called mXRP in September in partnership with Interop Labs and Hyperithm. That product currently has around $20 million in total value locked and targets a base yield of 6% to 8% with additional yield from DeFi strategies.
EarnXRP operates as a vault token that allocates capital across multiple protocols, while stXRP from Firelight Finance functions as a receipt token. Firelight launched an XRP staking protocol on Flare earlier this month with a liquid token designed to earn rewards through a DeFi insurance model.
At launch, earnXRP deploys capital across carry trades, staking and cover underwriting via Firelight, and concentrated liquidity provision in automated market makers. The teams said additional strategies may be added over time.
Users can withdraw anytime by redeeming earnXRP tokens for FXRP. The initial deposit cap is set at 5 million FXRP with no per-user limit, and fees are waived for the first 30 days.
Deposits are available through the Upshift platform. Users must first mint or swap into FXRP on Flare before participating in the yield product.
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