🚀 XRP-Backed Stablecoin Loans Launch on Flare via Enosys: First-Ever DeFi Breakthrough

Flare Network just flipped the script on decentralized finance—Enosys rolls out the world's first XRP-backed stablecoin lending protocol.

Unlocking Frozen Capital

XRP holders can finally leverage their dormant assets. No more watching stacks gather dust while other chains dominate DeFi yield. The mechanism converts XRP into stablecoin loans while maintaining collateralization on Flare’s interoperable infrastructure.

Cross-Chain Mechanics, Zero Compromise

By utilizing Flare’s state connector and EVM compatibility, Enosys bypasses traditional liquidity fragmentation. Loans execute trustlessly—because who needs intermediaries when code settles faster than Wall Street’s morning coffee?

Yield Without the Banking Blues

Borrow against XRP without selling. Deploy capital into other protocols or simply short the fiat system—because sometimes the best trade is avoiding traditional finance altogether.

This isn’t just another lending platform. It’s a direct challenge to asset stagnation. XRP’s utility just got a defibrillator—and the EOY pump might actually be justified for once.

First XRP-backed Stablecoin Loans on Flare

Enosys explained that the XRP holdings will back the stablecoins, ensuring they maintain a value close to $1. Through this approach, XRP holders can access the value of their assets without having to sell them.

The CDP protocol to be deployed on Flare is called Liquity. Enosys claims Liquity is one of the most tried and trusted protocols in the decentralized finance (DeFi) sector. Since its launch in 2021, the network has secured billions of dollars in collateral and kept its stablecoin peg amid extreme market conditions.

One mechanism at the Core of Liquity’s success is the protocol’s stability pool. The pool allows users to stake their stablecoins for yield coming from mint fees, liquidation rewards, and interests paid on loans. This mechanism makes sure the protocol can cover outstanding debt in the event of liquidation.

Enosys will release a fork of Liquity V2 on Flare, maintaining the features that made the first version trusted. The only changes made will be upgrades like protocol-incentivized liquidity, capital efficiency, and user-set borrowing rates.

Access to DeFi Yield Opportunities

The alliance between Enosys and Flare will affect a select Flare-native tokens for now. They include Flare XRP (FXRP) and Wrapped Flare (wFLR). The companies intend to expand the capabilities to staked XRP (stXRP) soon, allowing Ripple holders to put their assets to work.

Users can lock their FXRP on Flare and mint a stablecoin, which can provide liquidity and access to DeFi yield opportunities. While borrowers can set the annual percentage rate (APR) they’re willing to pay, lower rates come with a price. If the stablecoin falls below its $1 peg, loans with the lowest interest rates will be redeemed first.

“This is just the beginning. By bringing a proven model like Liquity V2 to Flare, we’re laying the foundation for stable, decentralized liquidity powered by XRP and enhanced by liquid staking,” the Enosys team stated.

Meanwhile, Enosys Loans will also be utilizing data from the Flare Time Series Oracle (FTSO) to implement decentralized collateral pricing.