XRP holders now have a way to earn yield without selling their tokens or navigating complex DeFi strategies, thanks to Flare’s data-driven blockchain EarnXRP, a fully on-chain yield product denominated in XRP.
The new vault allows users to deposit FXRP, an individual representation of XRP on Flare, and earn returns that are then compounded into XRP, according to a press release. Instead of juggling multiple protocols, users make a single deposit and receive EarnXRP, a receipt token that tracks their share of the vault and its accumulated yield.
Behind the scenes, the vault distributes funds among various strategies, including XRP staking, liquidity provision, and carry trades that borrow low-cost stablecoins and deploy them to higher-yielding venues.
The launch is significant because only a tiny fraction of XRP’s supply is currently used in DeFi, despite the token’s size and liquidity. By keeping yields denominated in XRP, EarnXRP aims to attract holders who want yield without taking the risk of stable trading or active trading.
For Flare, the vault acts as a liquidity engine. Turning idle XRP into productive capital increases on-chain activity, deepens markets, and strengthens Flare’s FAssets system, which integrates XRP into smart contract environments.
