XRP holders now have a option to earn yield without selling their tokens or navigating complicated DeFi methods, with data-focused blockchain Flare’s earnXRP, an absolutely on-chain yield product denominated in XRP.
The brand new vault permits customers to deposit FXRP, a one-to-one illustration of XRP on Flare, and earn returns which are compounded again into XRP, according to a press release. As a substitute of juggling a number of protocols, customers make a single deposit and obtain earnXRP, a receipt token that tracks their share of the vault and its gathered yield.
Behind the scenes, the vault spreads funds throughout a mixture of methods, together with XRP staking, liquidity provision and carry trades that borrow low-cost stablecoins and deploy them into higher-yield venues.
The launch issues as a result of solely a tiny fraction of XRP’s provide is at present utilized in DeFi, regardless of the token’s measurement and liquidity. By retaining returns denominated in XRP, earnXRP goals to attraction to holders who need yield without taking over stablecoin publicity or lively buying and selling threat.
For Flare, the vault acts as a liquidity engine. Turning idle XRP into productive capital will increase onchain exercise, deepens markets and strengthens Flare’s FAssets system, which brings XRP into good contract environments.
