XRP Breaks Into DeFi: Flare’s FAssets Upgrade Finally Delivers Utility
Ripple’s sleepy giant wakes up—Flare Network just plugged XRP into DeFi with its FAssets system. No more watching Ethereum and Solana eat all the yield.
How it works: FAssets wraps XRP (and others) as cross-chain collateral. Suddenly, staking, lending, and liquidity mining open up—without bridges or custodians. The catch? It’s still DeFi, so expect the usual landmines.
Wall Street’s take: ’Innovative! Now let’s see if anyone uses it,’ muttered one analyst between sips of $8 artisanal coffee.
What makes Flare’s FXRP different?
The key difference between Flare’s FXRP and similar bridged assets is in the custody and security. Previously, bridged assets have been a major source of security risks in the past. Because users have to give custody over their assets to a third party, cross-chain bridges were prone to exploits and rug pulls.
According to a report by Chainalysis, cross-chain bridges accounted for over $1 billion in losses due to security breaches in 2022. Due to the custody issue, as well as the technical complexity involved, bridges accounted for 70% of all the losses in the crypto space.