Flare has rolled out permissionless modular lending for XRPFi, opening new onchain options for XRP holders. The launch went live on Feb. 3 through an integration with Morpho and Mystic, giving users a way to earn yield, access credit, and link positions to broader DeFi strategies without giving up their XRP exposure.
Flare, a layer-1 blockchain focused on data interoperability, described the release as the first time modular lending has been brought to the network. In its framing, the move is part of a broader XRPFi push aimed at turning XRP from a largely passive asset into one that can generate yield, support borrowing, and fit into composable onchain strategies.
Morpho powers the lending layer while Mystic handles access
Morpho, which Flare said has more than $10 billion in total deposits across EVM-compatible chains, now serves as the base infrastructure for Flare’s modular lending layer. Mystic acts as the primary front-end, helping users discover vaults, deposit into managed strategies, and borrow against supported collateral.
The structure is built around isolated, single-collateral lending markets with parameters set at the moment each market is created. That shifts configuration away from protocol-wide governance and toward market-level and vault-level design. For FXRP holders, the practical result is clear: they can place assets into curated vaults, borrow stablecoins, and keep their XRP market exposure in place.
FXRP is positioned as a bridge into broader XRPFi activity
Flare said the model is designed around capital efficiency, composability, and risk isolation, while keeping the underlying XRP anchored to the XRP Ledger. Instead of selling XRP to unlock liquidity, users can move through FXRP and deploy those positions into lending markets that can interact with other onchain strategies.
The company also placed the launch within its wider XRPFi buildout. It said the XRP community has historically had limited access to advanced DeFi strategies, and pointed to earlier pieces of infrastructure already introduced on Flare, including FXRP, staking through Firelight, spot trading through Hyperliquid, and yield tokenization through Spectra. The Morpho and Mystic integration adds lending depth to that stack.
Independent curators set strategies across supported markets
Flare is extending its curator-led vault model into lending. Independent risk managers such as Clearstar and Carpathian are responsible for configuring strategies and allocating capital across selected markets backed by FXRP, FLR, and USDT0. Mystic is the interface where those vaults can be found and used, whether for deposits into managed vault strategies or borrowing against eligible collateral.
Flare also said future development will focus on reducing complexity through more streamlined looping strategies. For now, the launch puts governance-driven protocols and modular lending infrastructure together in a composable framework aimed at institution-grade XRPFi participation.