XRP holders can now earn yield without selling their tokens or dealing with complicated DeFi strategies, thanks to Flare’s earnXRP—a fully on-chain yield product in XRP.
This new vault enables users to deposit FXRP, a one-to-one equivalent of XRP on Flare, and earn returns that are automatically compounded back into XRP, as stated in a press release. Users make a single deposit and receive earnXRP, a receipt token representing their share of the vault and its accrued yield, instead of managing several protocols.
The vault strategically allocates funds across various methods, including XRP staking, liquidity provision, and carry trades that borrow stablecoins at low costs and invest them in higher-yield opportunities.
This launch is significant because only a small portion of XRP’s total supply is currently utilized in DeFi, despite the token’s notable size and liquidity. By keeping returns denominated in XRP, earnXRP aims to attract holders seeking yield without the risks associated with stablecoins or active trading.
For Flare, the vault serves as a liquidity engine. Transforming idle XRP into productive assets enhances on-chain activity, deepens markets, and strengthens Flare’s FAssets system, which integrates XRP into smart contract environments.
