Getting Started with Flare and XRP DeFi

With institutional adoption of DeFi occurring at a blistering pace, traditional finance clients and DeFi natives alike are on the hunt for the best opportunities in DeFi, and one of the unexplored frontiers in the space is DeFi with XRP, or XRPfi.

The XRP Ledger (XRPL) was built with payments and value transfer in mind, but severely limits DeFi capabilities compared to other smart-contract networks like Ethereum, Solana, or Hyperliquid.

Flare - an EVM-compatible Layer 1, makes XRP DeFi-ready through its native bridging system, FAssets.TheFAssets protocol enables XRP holders to mint FXRP on Flare, providing EVM-level composability and access to DeFi opportunities. This system is secured by Flare's data stack — theFlare Time Series Oracle (FTSO) and Flare Data Connector (FDC), which deliver verifiable cross-chain activity and real-time price feeds.

Withbuilt-in composability, FXRP and its liquid staked counterpart, stXRP (enabled by Firelight), can be used across staking, lending, and yield markets, powering a truly interoperable XRPfi ecosystem.

But bridging alone doesn’t unlock value; utility does. Moving assets is just the beginning. What truly matters is what users can do with their assets after they arrive. While bridges for XRP have existed before, they’ve often led to idle liquidity with nowhere meaningful to go. That’s where Flare is different. Beyond enabling the bridge, Flare has been purposefully building a full-stack DeFi ecosystem to support XRPFi, from integrating USDT0 to enable deep liquidity, to creating the staking, yield markets, DEXs and lending protocols, making it a truly functional and scalable home for XRP in DeFi.

DeFi Expansion on Flare

The past year has been an inflection point for Flare DeFi, with new protocols, deeper liquidity, and booming activity pushing DeFi to new heights.

Current ecosystem metrics:

• TVL (Total Value Locked): ~$130 million
• Stablecoin liquidity: ~$110 million
• USD₮0 minted on Flare: Over 65 million, ready for use in swapping, borrowing, trading perpetuals, and providing liquidity.
• DEX transaction volume: ~$30 million weekly
• Volume bridged via Stargate: +26 million USDC.e and 2687 WETH

Explosive Growth in TVL and Stablecoin Liquidity

Following the launch of USDT0 on Flare, total value locked on the network has surged almost 250% to $122 million from just $35 million, according to DeFiLlama, and more than $62 million worth of USDT0 is active on Flare, according to Dune Analytics.

A recent report by blockchain research firm Messari dove into the world of Flare and highlighted the importance of the USDT0 launch on the network.

In addition to the appeal of operating in a less competitive DeFi space that is still backed by assets as large as XRP, Flare is also hosting an FAsset incentives program, with more than 2 billion FLR, worth roughly $45 million, being distributed to active participants in the Flare ecosystem between July 2025 and July 2026.

XRPfi on Flare: Built for Retail and Institutions Alike

XRP DeFi on Flare is powered by the FAssets system, a secure, overcollateralized framework for minting composable versions of non-smart contract assets like XRP. FXRP, the wrapped representation of XRP, is directly backed by collateral secured via the system’s Core Vault on the XRP Ledger. With the launch of FAssets v1.1 in March, liquidity access for minting has dramatically expanded, laying the foundation for deep, scalable liquidity that supports robust DeFi application development.

XRP DeFi on Flare is made possible by FAssets, which are overcollateralized and highly secure wrapped assets that exist on Flare.

Unlike typical bridges, FAssets are underpinned by Flare’s enshrined data infrastructure — FTSO and FDC. These native protocols ensure reliable, real-time verification of external chain activity and price data, critical for building trustless, institutional-grade DeFi systems. FXRP now functions as the go-to version of XRP for DeFi, enabling users to earn yield and developers to tap into one of crypto’s most liquid, stable assets.

The traction is real: institutional players are taking notice. VivoPower’s commitment to deploy $100M in XRP on Flare marks a major validation of XRPfi’s potential to turn idle capital into yield. Similarly, Uphold’s upcoming launch of an XRP yield solution on Flare reflects growing demand from both retail and enterprise users. This convergence of TradFi and DeFi on regulated rails is positioning Flare as the definitive home for XRP in decentralized finance.

How to Get Started on Flare

Getting started with Flare is simple, whether you're coming from Ethereum, Arbitrum, or another supported chain. You can bridge assets directly to Flare using Stargate Finance, a trusted omnichain liquidity protocol. Just connect your wallet, choose Flare as the destination, and you're ready to explore the growing Flare ecosystem.

Once on Flare, here are a few dApps to try first:

• Kinetic – A lending and borrowing protocol where you can earn yield or borrow against your assets.
• SparkDEX – Flare’s native decentralized exchange for swapping and liquidity provisioning.
• Sceptre Liquid – A liquid staking platform that enables yield on your FLR and staked FXRP.

Kinetic and SparkDEX currently account for over 90% of Flare’s $120M+ TVL, showcasing strong early traction and leaving ample room for new protocols to grow and compete.

For institutional users, Flare is also making significant strides: partnerships with BitGo provide institutional-grade custody for FLR, opening the door to institutional adoption of its DeFi ecosystem.

As regulatory clarity improves globally and institutions warm to DeFi, Flare is positioning itself as the go-to ecosystem for XRP financialization. Whether you're a DeFi native or new to the space, Flare makes it easy to start exploring opportunities with XRP and beyond.