Flare Network has officially launched its first Fasset — FXRP v1.2 — on mainnet, marking a major breakthrough for the XRP community in decentralized finance (DeFi). This integration allows XRP holders to mint FXRP and participate in a wide range of DeFi protocols on Flare without relying on native smart contract capabilities.
How FXRP Bridges XRP to DeFi
According to the official announcement, Fassets are a core protocol on Flare designed to bring non-smart-contract cryptocurrencies into the DeFi space. FXRP acts as a one-to-one representation of XRP, secured by an overcollateralized system of independent agents and Flare's on-chain data protocols. Users can transfer XRP to a self-custody wallet compatible with both Flare and the XRP Ledger, then mint FXRP through platforms such as AU or Oracle Daemon. Alternatively, holders can swap XRP for FXRP on decentralized exchanges like SparkDEX, Blazeswap, or Enosys — though they must already have XRP on Flare to perform the swap.
Hugo Philion, co-founder and CEO of Flare, explained the new possibilities: “XRP can be used on Flare in non-custodial and permissionless DeFi. It can also be placed into a vault, where a risk curator can generate returns on your behalf through strategies that are entirely onchain, offchain, or a hybrid of both. Flare has some of the biggest risk curators in the space building vault-based strategies, and we offer the full spectrum of opportunities in one place.” Once minted, FXRP can be freely used across the Flare ecosystem, enabling protocols to integrate it directly as a native building block without complex workarounds.
Multi-Layered Security Approach
To address security concerns, the Fassets system employs a multi-layered strategy. Four independent audits have been conducted by firms such as Zellic and Coinspect, complemented by Immunefi bug bounties and community reviews. Hypernative provides continuous monitoring, with rapid response protocols to safeguard high-value operations like trustless bridging and multi-chain minting.
Incentives and Ecosystem Expansion
To encourage adoption and sustainable growth, Flare will direct launch incentives in the form of rFLR tokens to specific DeFi pools that contribute significantly to on-chain activity. Initial incentives are allocated to pools such as Kinetic FXRP Supply, Kinetic FXRP/USDT₮0 Isolated Pool, and various liquidity pools on DEXes. In the coming weeks, deeper integrations will be powered by FXRP and stXRP (liquid staked XRP), a new asset from the upcoming Firelight project. This will enable FXRP to be used as collateral for loans and introduce curated vaults for yield-generating strategies. Once Firelight launches and stXRP becomes available, the full XRPFi flywheel will accelerate, driving new layers of utility for XRP on Flare, engaging more partners, expanding collateral options, and building a trustless DeFi ecosystem.