Despite its huge popularity, XRP (XRP) XRP has been largely absent from decentralized finance (DEFI) due to the technical boundaries of laser (XRPL).
The objective of the XRPFI, a Defi ecosystem focuses on the XRP is to narrow that difference. This takes advantage of the bridging and smart contract technology of the flare network to bring the XRP under the purview of programmable finance.
Flair network, a full-stack layer-1 blockchain, designed for data-intensive applications, serves as an important bridge, which connects non-smart-contrast assets such as XRP to the DEFI ecosystem.
In the center of the infrastructure of the flair, there is a system, which creates a thorough collateral representation of these assets. A notable example is FXRP, a wrapped version of XRP that enables holders to deploy its XRP in the DEFI protocol within the flare network.
By state FXRP, the holders receive STXRP, a liquid stacking token that represents a claim on stacked FXRP. The head of development in Max Luck, Flair, told the Coinlagraph: “This setup allows XRP holders to unlock the domestic-like stacking yields on an asset that does not support stacking otherwise, which enables passive income without renunciation of liquidity.”
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Institutions are showing growing interest in XRPFI: Digital Money Platform, which exceeds 1.8 billion XRP, has indicated a plan to attach to FASSETS ECosystem, while NASDAQ-listed Vivopower has recently announced a deployment of $ 100 million XRP on Flare, how prominent players have declared the speed of XRPFI.
Over $ 130 billion with the market capitalization of XRP, also directing a fraction of that liquidity in DEFI can unlock an important new capital source for the broad ecosystem. Flair’s technology expands the usefulness of XRP, which encourages more participation from both institutional investors and retail holders.
Liquid stacking is coming in XRP ecosystem through the launch of STXRP
Liquid stacking is set to make its debut in XRP ecosystem, which is powered by Flair, with the launch of STXRP on the firelight protocol. Like liquid staking token stath (Steth) For stacked ath (ET)) Presented by protocols such as LIDO, firelight will allow users to stake FXRP and get a liquid stacking tokens, which can be used in the growing Defi ecosystem of Flare.
This process works by depositing FXRP in the launch vault of the firelight, which collides the STXRP in the ratio of 1: 1. These ERC -20 tokens are completely transferable and can be used in decentralized exchanges, lending markets and other yield -generating DEFI protocols.
Importantly, the underlying FXRP will remain a steak on the safe service network (SSNs), which helps to secure decentralized protocols in many ecosystems by earning probably prizes for users.
As holders of STXRP, users can also earn firelight points, which can affect future prize distribution. In the long run, it can increase the composibility of STXRP within the dynamic XRPFI ecosystem, which can enable its use as collateral, liquidity or yield-bearing property in a wide range of DEFI applications.
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