Flare (FLARE) has officially launched its FAssets upgrade, marking a significant step forward for XRP (XRP) in the DeFi sector. On May 14, Flare unveiled FAssets on its Songbird network, enabling users to utilize XRP in decentralized finance applications without the security risks associated with traditional blockchain bridges, according to a statement shared with crypto.news.
Through the introduction of Core Vaults, users can lock up assets like Bitcoin (BTC), Dogecoin (DOGE), and XRP without transferring custody, effectively transforming them into FXRP tokens. This allows traders to engage in DeFi activities such as yield farming, lending, borrowing, and staking, using FXRP as collateral.
Flare’s Co-founder and CEO, Hugo Philion, emphasized the significance of this launch:
“This upgrade is about giving XRP true DeFi capabilities. XRP is one of the largest assets by market cap, and FXRP offers a way for it to become more composable in the DeFi ecosystem.”
Flare’s FAssets protocol mitigates the security risks typically associated with cross-chain bridges. According to Chainalysis, cross-chain bridges accounted for over $1 billion in losses in 2022, representing 70% of all crypto-related security breaches. By implementing Core Vaults, Flare eliminates the need for third-party custody, ensuring a more secure DeFi experience for XRP holders.
The integration of FXRP not only expands XRP’s utility but also paves the way for further asset integration on the Flare network, positioning it as a pivotal player in the DeFi landscape.
