DeFi

Dogecoin

Oracle

Flare

<div>
 Flare is making headlines because it is transforming the place XRP will hold in decentralized finance (DeFi).
 Utilizing its native data infrastructure and applying new cross-chain asset protocols, Flare is unlocking opportunities for XRP holders to participate in the growing DeFi landscape—without sacrificing security or token custody.
 Key Takeaways
 <ul>
 <li>Flare's native oracle and data validation stack (<a href="https://dev.flare.network/ftso/overview/" target="_self" rel="noopener noreferrer nofollow">FTSO</a> + <a href="https://dev.flare.network/fdc/overview/" target="_self" rel="noopener noreferrer nofollow">FDC</a>) enables safe, verifiable cross-chain action and distinguishes Flare from other Layer-1 blockchains.</li>
 <li>FXRP allows XRP holders to mint a 1:1 token representation on Flare, bringing one of the most liquid assets in crypto into DeFi in a non-custodial, EVM-compatible manner.</li>
 <li>The launch of USD₮0 stablecoin via LayerZero injected a spark into Flare's total value locked (TVL) to reach triple in under two weeks.</li>
 <li>Flare is designed to scale, and it's planned to support Bitcoin, Dogecoin, and other major assets via its <a href="https://flare.network/products/fassets" target="_self" rel="noopener noreferrer nofollow">FAssets</a> protocol.</li>
 <li>Flare's canary network, Songbird, is crucial for update testing as well as keeping mainnet secure.&nbsp;</li>
 </ul>
 <h2 id="what-is-flare">What is Flare?</h2>
 Flare (FLR) is a Layer-1, full-stack blockchain optimized for data-hungry use cases and cross-chain interoperability. Its three core features are:
 <ul>
 <li>Flare Time Series Oracle (FTSO), provides decentralized, enshrined data feeds natively on Flare.</li>
 <li>Flare Data Connector (FDC), authenticates external blockchain data for Flare's EVM state, enabling trustless interoperability.</li>
 <li>FAssets, allows creation of fully collateralized Flare representations of non-smart-contract assets (e.g., XRP).</li>
 </ul>
 <h2 id="how-fassets-work">How FAssets Work</h2>
 Compared to traditional wrapped tokens relying on custodial agents, Flare's <a href="https://dev.flare.network/fassets/overview" target="_self" rel="noopener noreferrer nofollow">FAssets</a> system is <a href="https://dev.flare.network/fassets/collateral/#system-wide-thresholds" target="_self" rel="noopener noreferrer nofollow">collateralized</a> and decentralized.
 Customers send XRP to a registered agent of the XRP Ledger (XRPL). The agent freezes collateral on Flare and, upon verification via <a href="https://dev.flare.network/fdc/overview/" target="_self" rel="noopener noreferrer nofollow">FDC</a>, FXRP is minted in a 1:1 ratio for the customer.
 The system uses multiple layers of collateral:
 <ul>
 <li>1x underlying asset (XRP)</li>
 <li>FLR pool collateral (typically &amp;gt;1.5x FXRP value)</li>
 <li>Stablecoin collateral (~1.2x FXRP value)</li>
 <li>More than 2x system collateralization for robust protection.</li>
 </ul>
 Multi-signature escrows, daily release of funds, and an Alert Mode in the event of emergencies lock up user funds. Regular audits and bug bounties add to security too.
 <h2 id="songbird-flare-s-canary-network">Songbird: Flare's Canary Network</h2>
 <a href="https://dev.flare.network/fassets/songbird/" target="_self" rel="noopener noreferrer nofollow">Songbird</a> is Flare's production-grade testnet, where new protocols and features (like FAssets v1.1) are piloted in real economic conditions before being deployed on mainnet.&nbsp;
 The rapid uptake—$2 million of FXRP minted over four days—is a sign of strong demand and provides helpful learnings for Flare's mainnet launch.
 <h2 id="the-usdt0-effect">The USDT0 Effect</h2>
 The introduction of <a href="https://usdt0.to/" target="_self" rel="noopener noreferrer nofollow">USDT0</a> (an omnichain version of Tether's USDT, issued via LayerZero) was a breakthrough for Flare.
 Over a remarkable 13-day period, Flare’s total value locked (TVL) surged from $37.1 million to more than $120.9 million, reflecting a rapid influx of liquidity and user engagement.
 This momentum has continued, and as of June 2025, Flare’s TVL has soared past <a href="https://defillama.com/chain/flare" target="_self" rel="noopener noreferrer nofollow">$148 million</a>—a testament to the platform’s growing appeal in the DeFi space.
 A significant driver of this growth has been the introduction of USD₮0, which now makes up 63% of all stablecoin liquidity on Flare.&nbsp;
 The addition of other stablecoins like USDC and USDX has further diversified the ecosystem, reducing the platform’s dependence on any single issuer and enhancing its overall stability.
 To incentivize participation, Flare launched the USDT₀ Boost programme, offering users up to 30% APY in <a href="https://flare.network/news/a-guide-to-rflr-rewards" target="_self" rel="noopener noreferrer nofollow">rFLR</a> tokens.&nbsp;
 This attractive yield, combined with Flare’s policy of refunding gas fees for USD₮0 transactions, has made it easier and more cost-effective for users to engage with DeFi protocols on the platform.&nbsp;
 These initiatives have not only fueled TVL growth but have also positioned Flare as a welcoming and innovative environment for both new and experienced DeFi participants.
 <h2 id="xrp-s-defi-moment">XRP's DeFi Moment</h2>
 XRP's vast liquidity and user base were, for years, excluded from DeFi, as XRPL lacked support for smart contracts. Flare's FAssets protocol turns this on its head.
 Companies like Uphold and <a href="https://x.com/Vivo_Power/status/1932783131305914804" target="_self" rel="noopener noreferrer nofollow">VivoPower</a> are offering significant XRP on Flare, affirming the FAssets thesis and freeing up new yield potential for institutional investors.
 Incidentally, XRPFi unlocks DeFi for the masses, enabling them to lend, borrow, yield farm, and provide liquidity with their XRP — at the expense of custody.
 <h2 id="stxrp-and-firelight">stXRP and Firelight</h2>
 Flare will introduce liquid staking to XRP through the <a href="https://x.com/Firelightfi" target="_self" rel="noopener noreferrer nofollow">Firelight</a> protocol.
 How It Works: Investors lock up FXRP in Firelight's Launch Vault and receive stXRP (an ERC-20 token) on a 1:1 basis. stXRP can be applied in any DeFi protocol while the underlying FXRP is staked, earning rewards.
 stXRP can be collateral, liquidity, or a yield-generating asset anywhere in the XRPFi ecosystem.
 <h2 id="beyond-xrp">Beyond XRP</h2>
 Flare’s vision extends beyond XRP. The FAssets protocol will soon support other major assets like Bitcoin (FBTC) and Dogecoin (FDOGE), using the same trust-minimized bridge architecture to mobilize liquidity from additional ecosystems.
 <h2 id="flare-s-pivotal-role-in-defi-s-next-wave">Flare’s Pivotal Role in DeFi’s Next Wave</h2>
 Flare is positioning itself as the go-to platform for XRP-based DeFi activity through its strong infrastructure, strict security standards, and increasing institutional attention.&nbsp;
 By connecting XRP's idle liquidity to the programmable universe of DeFi, Flare is not just adding to XRP's utility but also pushing wider blockchain adoption.
 With liquid staking and newer FAssets coming online, the XRPFi story gains traction. Flare's methodology sets a new standard for cross-chain DeFi innovation.
</div>

How Flare Is Bringing XRP to DeFi

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