- XRP can now be easily collateralized to mint stablecoins on Flare
- Unlocking new opportunities for XRPFi
Enosys, a leading blockchain research and development team on Flare Network, has just forked Ethereum’s DeFi protocol Liquity. The opportunity to pledge XRP as collateral while minting stablecoins is the core feature of the new service, Enosys Loans.
XRP can now be easily collateralized to mint stablecoins on Flare
According to an official statement by Enosys, a Web3 development team, it introduced Enosys Loans, a friendly fork of Ethereum’s DeFi Liquity. With Enosys Loans, holders of FXRP — an XRP-backed synthetic asset on Flare — will be able to collateralize their holdings to issue stablecoins.
In the first releases, stablecoin minting will be available for FXRP and wFLR depositors with Staked XRP (stXRP) and FlareBTC (FBTC) services incoming. As a result, Enosys Loans paves the way for enhancing both XRP and BTC presence in the DeFi sphere.
As explained by the team, the decision of the “friendly forking” of Liquity was made since its architecture proved reliable and flexible for CDP operations:
To ensure a smooth minting process and fair pricing for collateralized value, Enosys Loans employs Flare Times Series Oracle (FTSO), an on-chain oracle design on Flare (FLR).
To generate additional yield, all wFLR collateralized will be delegated on the owners’ behalf.
Unlocking new opportunities for XRPFi
Hugo Philion, a Flare Networks co-founder, is excited by the new instruments of XRP inclusion into yield designs of modern DeFi:
Enosys Loans is one of the most advanced attempts to integrate XRP, non-programmable by design, in decentralized on-chain finance.
Meanwhile, the total value locked in native XRPL-based DeFi protocols grows steadily. As per the DefiLlama tracker, XRPL DeFi TVL exceeded $100 million.
Image by DefiLlamaThe native XRPL DEX is responsible for the lion’s share of this TVL volume.
Source: https://u.today/first-ever-xrp-backed-stablecoin-kicks-off-details
