XRP holders can now earn through data-centric blockchain Flare’s EarnXRP, a fully on-chain yield product denominated in XRP, without the need to sell tokens or execute complex DeFi strategies.
According to a press release, the new vault allows users to deposit FXRP (the one-to-one representation of XRP on Flare) and earn returns compounded back in XRP. Instead of dealing with multiple protocols, users only need to make a single deposit to receive EarnXRP, a receipt token that tracks their vault share and its cumulative yield.
Behind the scenes, the vault disperses funds through a variety of strategies, including XRP staking, liquidity provision and arbitrage trades that borrow low-cost stablecoins and deploy them to higher-yielding venues.
This launch is important because despite its size and liquidity, only a small portion of the XRP supply is currently used in DeFi. By maintaining returns denominated in XRP, earnXRP aims to appeal to holders who want yield without the risk of a stablecoin or the risk of active trading.
For Flare, the vault acts as a liquidity engine. Converting idle XRP into productive capital can increase on-chain activity, deepen the market, and enhance Flare’s FAssets system, thereby introducing XRP into the smart contract environment.
