The Flare blockchain has borrowing and borrowing for $XRP-linked assets via an integration with Morpho, a crypto lending protocol that runs across multiple Ethereum-compatible chains.
The update allows users to lend and borrow using FXRP, a version of $XRP designed for use on Flare, the team behind the blockchain said Monday. Flare pitched the move as a step toward giving $XRP holders more ways to earn yield and use their tokens beyond holding or trading.
For years, $XRP has had fewer decentralized finance (DeFi) options than tokens built on smart contract networks. Flare has tried to change that by building tools that make that possible $XRP are used in onchain apps while preserving the original $XRP on the $XRP General ledger.
FXRP holders can now deposit their tokens to earn interest, or use FXRP as collateral to borrow other assets such as stablecoins.
Flare said these positions can also be combined with other features on the network, including staking and yield products, for users who want more active strategies.
Morpho works differently than older credit apps that combine many assets into one shared pool. Each credit market is set up with one collateral and one borrowed asset, and the rules for that market are established when it is created. This structure is intended to prevent problems in one market from spreading to others.
The first entry point is Mystic, a separate app that shows available vaults and allows users to deposit money or borrow against collateral. Flare said more ways to access the markets may be added later, including through Morpho’s main app.
Some safes are offered by independent curators, including Clearstar. These vaults include options backed by FXRP, Flare’s native token FLR, and USDT0.
The rollout is part of a broader effort by several networks to expand lending to large token communities that have largely been left out of onchain finance.
Read more: $XRP Ledger upgrade lays the foundation for lending and tokenization expansion