Flare's wrapped XRP approved as collateral in $280M RLUSD lending vault
In brief
- FXRP approved as collateral in Sentora's $280 million RLUSD lending pool on Ethereum
- XRP holders can borrow RLUSD without selling coins via permissionless Morpho Blue market
- 155 million FXRP minted since launch; no whitelist requirement for market access
- Flare targets 5 billion XRP into ecosystem over six months via expanded DeFi access
How it works
Flare's wrapped XRP token (FXRP) has been accepted as collateral by Sentora, which manages the $280 million lending pool. Users mint FXRP through Flare's FAssets system, bridge it to Ethereum via Stargate, deposit it into the market and borrow at their chosen loan-to-value ratio. The process currently requires several manual steps, though Flare is building a route through Smart Accounts that would allow holders to authorize the entire sequence from an XRP Ledger wallet.
Sentora reviewed FXRP's market behavior, oracle design, liquidity and liquidation capacity before approving it as collateral. The isolated market structure ensures that a failure in the FXRP market stays contained within it rather than affecting the rest of the vault.
Bridging a gap in DeFi
"XRP is one of the largest assets in crypto and one of the least used in DeFi" — Hugo Philion, Flare co-founder and CEO
XRP has historically sat on the sidelines of decentralized finance. Approximately 155 million FXRP has been minted since launch, and Flare has stated a target of drawing 5 billion XRP into its ecosystem over six months. The lending approval represents a step toward that goal.
The new FXRP/RLUSD market opened with a conservative supply cap that may rise as usage grows. Access is permissionless. No whitelist gates entry. For XRP holders seeking yield or liquidity without exiting their position, the vault opens a path that didn't exist before on Ethereum.
