XRP just got ia a new category of on-chain utility following the introduction of modular lending to the Flare Network. According to the latest announcement of the blockchain network, XRP modular lending has started on the network through the integration of Morpho and Mystic Finance.
I The new update does it enables FXRP holders to put their XRP exposure to work in selected vaults, yield and borrow against that position on the chain, a feature known as earn yield and borrow without selling.
Modular Lending Is Live And Brings DeFi Utility To XRP
Most importantly part of the announcement Morpho’s deployment to the Flare Network, a move that opens permissionless lending markets pegged to XRP via FXRP, Flare’s XRP-pegged asset used in its XRPFi stack.
Burning described Morpho as a global lending network with more than 10 million deposits in total across all EVM chains. Notably, the integration with Morpho is the first time that modular lending has been made available to the Flare network of XRP holders. Mystic Finance connects to that by serving as the ultimate Morpho on Flare. This means that users communicate through Mystic while Morpho runs the underlying lending market structure.
The integration of Morpho and Mystic Finance introduces standard lending vaults on the Flare network that is proactively managed and fully permissionless. These vaults are designed to give FXRP holders access to productivity that adapts to market conditions, while also balancing risk and return with automated strategies.
How FXRP Owners Earn Yield and Borrow Without Selling
XRP holders are largely limited to the DeFi niche, however a series of developments over In recent months it has started to change that dynamic. A modular lending integration including Morpho and Mystic Finance, built around FXRP on the Flare Network, now one of the most notable developments.
FXRP is a 1:1 trustless, overcollateralized representation of XRP on the Flare Network that allows the token to be used in DeFi applications without a custodian. Now that modular lending is now live, FXRP holders can get yield and borrow without selling their assets.
A fraction of the yield that is obtained comes from placing FXRP in selected vaults, which yield the yield. Once installed, the vault’s strategy and market conditions determine the return on borrowing. FXRP can be posted as collateral to borrow stablecoins or other assets backed by those markets, so that owners can get cash while maintaining exposure to XRP through FXRP. From there, users can integrate structured production strategies with Spectra and loop capital across staking, borrowing, and lending, all within the Flare environment.
This latest release is part of Flare’s various efforts to expand what XRP holders can do with their assets. Modular Lending adds another layer to an ecosystem that already includes FXRP staking through Firelight, spot trading through Hyperliquid, and token issuance through Spectra. These tools and features provide XRP owns many means of gain, borrowing, and position money, while the underlying XRP itself resides in the XRP Ledger.
Featured image from Getty Images, chart from Tradingview.com
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