Flare Networks claims to have transformed a portion of XRP from an unused position into something that can generate income. The changes are recent and the figures are concrete enough to attract attention, but they raise as many questions as they answer.
Bridging and flare activity
According to Flare, approximately 91.69 million XRP has been linked to its network. Around 75% of this stock would be actively used on-chain.
Reports indicate that the Flare vault system shows 90.55 million
The new Flare XRP Yield Vault has surpassed $10.54 million in TVL in 30 days. The latter figure represents rapid growth for a product aimed at XRP holders who until now had few options for earning yield.
How @FlareNetworks becomes the center of XRP DeFi:
91 M+ XRP bridged.
More than 75% deployed on-chain.
And now: the Flare XRP Yield Vault powered by @upshift_fi ‘s modular vault infrastructure, bringing automated strategy execution, risk frameworks and scalable yield to XRP for… pic.twitter.com/VwnnCJVldC
High deployment rate
The high deployment rate suggests that people are not just parking assets to earn an easy bonus. Activity has been recorded on a set of strategies and the wrapped FXRP is being moved to other protocols.
This activity was supported by a vault system built by Upshift, which automates yield processes and applies predefined risk controls. Reports indicate that returns are generated by a combination of on-chain strategies, although details of how these returns may change over time have not been fully described.
Based on past market trends, yield levels on crypto platforms have tended to decline once incentive programs are reduced. At the same time, the use of bridges and smart contracts introduces additional technical complexity, which has already led to disruption and losses in the sector. Where does the yield come from?
Reports indicate that other companies have adopted similar models. Axelar and Hex Trust are among those that have released wrapped XRP tools that yield profits once deployed. This means that several places are trying to make XRP productive.
At the same time, Ripple – the company closely linked to
GTreasury, acquired by Ripple for $1 billion in October, launched a product this month called Ripple Treasury. These moves add weight to the larger story, but do not change the mechanics of creating or maintaining on-chain yield.
Featured image from Yahoo Finance, chart from TradingView
