TLDR
- Flare Network has launched the first-ever stablecoin backed by XRP, boosting its utility in decentralized finance.
- The new stablecoin is built on Enosys Liquity V2 and uses XRP as collateral with Wrapped Flare tokens backing it.
- Users can lock their XRP in a Collateralized Debt Position and mint stablecoins, unlocking liquidity in the process.
- Flare Network’s system utilizes the decentralized Flare Time Series Oracle for secure and accurate pricing.
- The stablecoin enables XRP holders to use their assets in DeFi without selling them, expanding XRP’s use cases.
Flare Network has announced the launch of a new stablecoin backed by XRP. The stablecoin is built on the Enosys Liquity V2 framework, enhancing XRP’s role in decentralized finance (DeFi). This development marks a significant milestone for the XRP Ledger as it continues to expand its utility within the blockchain space.
Enosys Liquity V2 Integrates XRP as Collateral
Flare Network’s collaboration with Enosys introduces the first-ever XRP-backed stablecoin. The new system uses XRP as collateral, with Wrapped Flare (wFLR) tokens backing the stablecoin. Users can now mint stablecoins by locking their XRP into a Collateralized Debt Position (CDP), unlocking additional liquidity in the process.
https://x.com/FlareNetworks/status/1969046745058304089
This approach marks a major shift from previous iterations that relied on Ethereum. By integrating XRP, Flare Network leverages its growing popularity within the DeFi ecosystem. With this change, Flare Network strengthens XRP’s position as a key asset in decentralized finance and blockchain applications.
The system relies on decentralized pricing from Flare’s Flare Time Series Oracle (FTSO). This ensures that the pricing mechanism remains secure and accurate. Additionally, the integration of Liquity V2 makes the borrowing process more efficient, giving users better access to liquidity on Flare Network.
XRP as Collateral Unlocks New DeFi Potential
Flare Network’s XRP-backed stablecoin opens up new opportunities for XRP holders. With this stablecoin, holders can use their assets in decentralized finance without selling them. The stablecoin can be used for a wide range of purposes, such as payments, trading, and earning interest in DeFi.
In a statement, Hugo Philion, CEO of Flare, emphasized the broader use cases for XRP in the digital economy. He stated, “This stablecoin enables XRP to play a key role in the emerging digital economy, especially in the DeFi space.” XRP’s integration with stablecoins also positions the XRP Ledger as a global settlement layer.
Furthermore, the stablecoin allows users to retain exposure to XRP while still unlocking liquidity. Participants in the ecosystem will also receive rewards in the form of Flare tokens (rFLR). This incentivizes adoption and supports the growth of Flare Network’s ecosystem.
XRP Ledger Crosses New Milestone
Flare Network’s launch of the XRP-backed stablecoin comes at a time of increased adoption. The number of active accounts on the XRP Ledger recently surpassed 7 million, according to data from XRPScan. This milestone demonstrates the growing use of the XRP Ledger and its expanding role in the blockchain space.
The stablecoin launch further boosts XRP’s utility within the decentralized finance sector. As the DeFi landscape evolves, the XRP-backed stablecoin offers more options for users. This move strengthens the position of Flare Network as a key player in the development of the digital economy.
