In a recent development, Enosys has launched the first XRP-backed stablecoin on Flare Network, backed by Enosys Loans, a Collateralized Debt Position (CDP) protocol. Users will be able to lock FXRP, representation of XRP on Flare Network, into the protocol to mint stablecoin.
This will enable XRP holders to gain access to a decentralized stablecoin backed by their assets, enabling borrowing without selling, liquidity provision, and yield opportunities across DeFi.
In a recent X post, Flare announced that users can now mint a trustless, over-collateralized stablecoin using fXRP and wFLR collateral, and it will soon include stXRP. It is powered by a fork of Liquity v2, its stability pools and the Flare Time Series Oracle (FTSO), a custom oracle that aggregates price feeds from independent signal providers rather than centralized data sources.
According to their official statement, the main component of this development is Collateralized Debt Position (CDP), a protocol that allows users to mint a stablecoin against their collateral. This helps maintain stablecoin’s value at $1.
Furthermore, the stability pool covers risk in case of collateral shortfalls or liquidations. Users staking stablecoin in the stability pool earn yield via minting fees, interest, and liquidation rewards.
As the popularity of cryptocurrencies surges worldwide, stablecoins are seeing a drastic increase among both the retail and institutional users. A large share of stablecoin supply is currently used for various purposes like yield farming, staking, and trading.
