EarnXRP Launches on Flare: The First XRP-Denominated Yield Product
Upshift, Clearstar and Flare are launching earnXRP, a new XRP-denominated yield vault designed to make earning onchain XRP yield simpler, more transparent, and more accessible.
For the first time, XRP holders can generate yield directly denominated in XRP, without managing complex DeFi strategies themselves. The Flare XRP Yield Vault is made possible by Flare’s FAssets system, powered by Upshift’s vault infrastructure, and curated by Clearstar, an onchain risk manager with institutional expertise.
What is earnXRP
earnXRP is the first fully onchain yield product denominated in XRP. It allows users to deposit FXRP (XRP represented 1:1 on Flare) into a single vault that deploys capital across a diversified set of yield strategies. All returns are automatically compounded back into XRP.
Rather than relying on a single source of yield, earnXRP aggregates multiple onchain strategies into one transparent, non-custodial vault that users can access with a single deposit.
How earnXRP works
1. Deposit FXRP
Users deposit FXRP directly from their wallets into the earnXRP vault.
2. Receive earnXRP
In return, users receive earnXRP, the vault’s receipt token. This token represents the user’s deposited FXRP plus any yield generated over time.
3. Earn Automatically Compounded Yield
The vault deploys FXRP into curated strategies, with all profits compounded back into XRP.
4. Withdraw at Any Time
When users request a withdrawal, their earnXRP tokens are burned and FXRP is returned to their wallet. All vault operations are handled autonomously by Upshift’s infrastructure.
Please note that there is a 72-hour standard withdrawal period, subject to liquidity, with the option to pay a small fee for instant redemption.
Yield strategy overview
The earnXRP vault uses a diversified, market-aware strategy designed to generate yield while remaining fully denominated in FXRP. These strategies bring onchain versions of yield-generation approaches that professional funds have used for years — now accessible through a single vault.
At launch, the strategy consists of two main categories:
- FXRP deployments
- Mint or swap into Firelight stXRP
- Deploy stXRP/FXRP concentrated liquidity on Enosys and SparkDEX to earn trading fees and protocol incentives
- Carry trade deployments
In simple terms, a carry trade means borrowing capital where it’s cheap and deploying it where it earns more, capturing the difference as profit.
In earnXRP, FXRP is used as collateral to borrow stablecoins at low cost. These stablecoins are then deployed into other DeFi protocols where yields exceed borrowing costs. Profits are compounded back into FXRP, while the vault remains fully XRP-denominated - no FXRP is sold.
Key deployments include:
- Deposit FXRP or stXRP as collateral on Kinetic to borrow USDT0
- Deposit USDT0 into the Kinetic lending pool to arbitrage interest rate and incentive differentials
- Deposit FXRP as collateral on Enosys Liquity v2 to mint CDP
- Deposit CDP into the Liquity v2 stability pool to earn protocol fees and FXRP from liquidations
- Provide concentrated liquidity using borrowed or minted stablecoins:
- On SparkDEX: USDT0/USDC, USDT0/cUSDX
- On Enosys DEX: CDP/USDT0
These strategies — alongside staking and liquidity provision — are combined into a single, easy-to-use vault that allows XRP holders to earn yield without actively managing or rebalancing positions.
Additional strategies will be added and scaled over time, including PT tokens (fixed yield on Spectra), expanded lending venues, and potential crosschain deployments.
Launch parameters
- Deposits are available through the Upshift platform.
- Users must mint or swap into FXRP on Flare before depositing. Learn how to mint FXRP in our video guide: https://www.youtube.com/watch?v=WkdWZJJBem0
- 5x Upshift Points incentive for early users
- Initial deposit cap: 5 million FXRP, allowing strategies to scale responsibly
- Fees waived for the first 30 days upon launch
- No per user deposit cap
Why earnXRP matters for XRP holders
Flare enables XRP to be used in DeFi as FXRP, a 1:1 ERC-20 representation of XRP that unlocks DeFi utility not possible on the XRP Ledger alone. With earnXRP, XRP holders can maintain exposure to their preferred asset while accessing a broader set of yield opportunities.
"Only 0.1% of XRP supply is utilized in DeFi, despite it being the 5th largest cryptocurrency by market cap. Users have not had an easy way to capture sustainably high-returns. We're excited to work with Flare and Clearstar to unlock XRP yield using the new Flare XRP Yield vault." Ethan, Growth Lead at Upshift
earnXRP simplifies participation in XRP-based DeFi by providing:
- A single FXRP deposit
- A receipt token (earnXRP) representing vault ownership
- Automatically compounded, XRP-denominated yield
Once FXRP is deposited, Upshift and Clearstar handle everything else.
Why earnXRP matters for the Flare XRPFi ecosystem
Beyond yield, earnXRP serves as a core liquidity and adoption engine for Flare’s XRPFi stack. By transforming passive FXRP into productive capital, earnXRP increases onchain liquidity, supports deeper stablecoin markets, and accelerates usage of Flare’s FAssets system.
As capital compounds back into XRP rather than stablecoins or external assets, earnXRP reinforces XRP as the unit of account for the ecosystem. In doing so, it brings institutions, crypto-native users, and retail participants into a unified, self-reinforcing XRPFi economy built on Flare.
Meet Clearstar
Clearstar is an on-chain risk curator. They have deployed vaults across leading DeFi platforms including Morpho, Euler, and Upshift. They are backed by a Swiss asset management company with about $1B AUM and combine backgrounds in private equity, investment banking and DeFi.
Clearstar expertise has been developed through the continuous effort of providing top infrastructure, yield optimization and risk management to a market-neutral crypto fund since 2022. They design vaults with institutional rigor but make them easy to integrate into consumer-facing products.
Meet Upshift
Upshift is an institutional-grade toolkit for protocols and wallets to design and launch DeFi Earn vaults. Upshift focuses on transparency, security and flexible strategies.
Teams deploy Upshift vaults to generate high-quality yield for their LPs, while keeping funds non-custodial and deployed across a set of allowlisted strategies. Upshift has attracted over $500m in deposits across 25+ vaults, collaborating with partners such as Ethena, Kelp, Resolv, and now Flare.