Flare CEO Reveals How XRP Can Work Harder for Holders in DeFi

Flare Network CEO Hugo Philion has shed more insight on Firelight, its liquid staking protocol designed to expand XRP holders’ access to DeFi opportunities

Benefit of stXRP

According to Philion, this liquid staking token functions similarly to FXRP, Flare’s wrapped version of XRP, which is used in decentralized finance (DeFi). However, he emphasized that stXRP offers the dual advantage of allowing users to earn yield while also accessing loans without the need to sell their staked XRP.

The Firelight system is built to stay non-custodial and decentralized. These features will ensure users maintain control of their assets and avoid the risks of centralized platforms.

Potential Impact of DeFi on XRP Price

Philion expects the protocol to gain significant traction and take XRP to new heights. Meanwhile, several projects have been pushing to expand XRP DeFi opportunities.

Earlier this week, Axelar Network introduced a liquid staking solution for XRP holders via its mXRP token, allowing them to earn annual returns of up to 10%.

As Flare and other crypto projects expand DeFi opportunities for XRP, some community members believe these developments could significantly influence the token’s price.

Dom Kwok, the co-founder of EasyA, speculated that a true DeFi breakout for XRP could lift its price to roughly four figures. Other catalysts supporting Kwok’s bold prediction include increased retail and institutional participation, upcoming XRP-focused ETFs, and stablecoin payments.

In the meantime, institutional clients have shown interest in Firelight. Nasdaq-listed energy firm VivoPower has already committed $100 million worth of XRP in support of the liquid staking initiative. Leading cryptocurrency exchange Uphold has also partnered with Flare to provide retail access to FXRP.