- earnXRP lets XRP holders earn onchain yield without selling XRP or managing DeFi strategies.
- The vault compounds all returns back into XRP using FXRP as the base asset.
- Yield comes from staking, liquidity provision, and carry trades run fully onchain.
A new onchain yield product called earnXRP has launched on the Flare Network, giving XRP holders a way to earn yield without selling their tokens or managing complex DeFi positions.
The product is fully denominated in XRP, and compounds returns back into the same asset.
earnXRP allows users to deposit FXRP, a one-to-one representation of XRP on Flare, into a single vault. In return, users receive earnXRP, a receipt token that represents their share of the vault and all accumulated yield.
There is no need to move funds between protocols or rebalance positions manually.
How earnXRP Generates Yield
The vault deploys deposited FXRP across multiple onchain strategies. These include XRP staking, liquidity provision on decentralized exchanges, and carry trades that use FXRP as collateral to borrow low-cost stablecoins.
The borrowed capital is deployed into higher-yield venues, with profits routed back into XRP.
All strategies run fully onchain and are managed automatically. Profits are compounded back into FXRP, meaning no XRP is sold at any stage.
Withdrawals burn the earnXRP receipt token and return FXRP to the user, with a standard 72-hour withdrawal window and an option for faster redemption at a fee.
Why the Launch Matters for XRP Holders
Only about 0.1% of the XRP supply is currently used in DeFi, despite XRP being one of the largest and most liquid crypto assets. earnXRP targets long-term holders who want yield without switching into stablecoins or taking active trading risk.
By keeping returns denominated in XRP, the product maintains full exposure to the asset while making idle balances productive. This structure is designed to attract users who have stayed on the sidelines due to complexity or asset conversion risk.
A Liquidity Engine for the Flare Ecosystem
earnXRP also plays a very important role for Flare. Turning passive FXRP into active capital increases onchain liquidity and strengthens Flare’s FAssets system.
As yield compounds back into XRP, the asset remains the unit of account across the ecosystem.
At launch, deposits are capped at 5 million FXRP to allow strategies to scale safely. Fees are waived for the first 30 days, and early users receive incentive points.
Additional strategies, including fixed-yield instruments and expanded lending venues, are expected to be added over time.
Related: XRP Socials Turn Negative While Price Holds Critical Ground: What’s Next?
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/new-xrp-yield-product-earnxrp-launches-on-flare-network/
