XRP holders can now earn yield or borrow against FXRP without selling their holdings
Flare integrated Morpho to allow XRP holders to lend FXRP for yield or use it as collateral for borrowing.Summary
The Flare blockchain has launched a significant DeFi upgrade by integrating with the Morpho lending protocol, enabling users to interact with XRP-linked assets onchain. This allows XRP holders to lend FXRP (the version of XRP for use on Flare) to earn interest or use it as collateral to borrow other assets, such as stablecoins, without having to sell their original XRP. This move aims to address the historical lack of DeFi options for XRP compared to tokens on smart contract networks. Morpho operates by creating distinct lending markets with specific collateral and borrowed assets, isolating potential issues. Initial access is available through the Mystic app, which displays available vaults curated by entities like Clearstar, offering options backed by FXRP, FLR, and USDT0.
(Source：CoinDesk)