Even with these limitations though, Flare Network is dramatically increasing the utility of XRP within the decentralized finance (DeFi) landscape. Flare enables XRP holders to access DeFi protocols through its FAssets infrastructure. They accomplish this by using FXRP, a wrapped version of XRP.
During this process, fAssets allow for the formation of fully-collateralized representations of all types of assets. In the meantime, FXRP allows XRP holders to participate in DeFi trades and lending. Flare is the decentralized network that powers the Firelight protocol, which is about to launch stXRP, a liquid staking solution for the XRP ecosystem.
XRPFi, a decentralized finance ecosystem built around XRP, has become one of the first platforms to expand the utility of XRP in DeFi. With Flare providing interoperability between the different DeFi protocols on Flare’s network, FXRP—Flare’s version of XRP—lets XRP holders participate in these new DeFi protocols. FAssets are a foundational piece of Flare’s infrastructure.
With the implementation of stXRP on Firelight protocol, liquid staking will be available to the XRP ecosystem.
"This setup allows XRP holders to unlock native-like staking yields on an asset that otherwise doesn’t support staking, enabling passive income without sacrificing liquidity," - Max Luck, head of growth at Flare.
If approved this would be a major milestone towards increasing the usability of XRP. It provides greater flexibility and liquidity by enabling holders to continue to earn staking rewards without locking up their assets.
