Enosys Loans: Bringing the first XRP-backed stablecoin to Flare

Enosys announced the launch of Enosys Loans, the first-ever Collateralized Debt Position (CDP) protocol that allows XRP holders to mint a trustless, overcollateralized stablecoin directly on Flare, launching first with FXRP and wFLR, and soon expanding to stXRP.

How CDPs power stablecoins

The engine behind this system is a Collateralized Debt Position (CDP). A CDP protocol allows users to mint a stablecoin against their collateral. The collateral backs the stablecoin and helps it maintain a value close to $1. This means that XRP holders will be able to access the value of their XRP without having to sell their tokens.

A crucial component of this mechanism is the stability pool, which ensures the system can cover outstanding debt in case of liquidation. Users who stake their stablecoin in the stability pool are rewarded with real yield coming from the mint fees, interest paid, and liquidation rewards

On top of this, a cornerstone of Enosys Loans is its integration with the Flare Time Series Oracle (FTSO) for decentralized collateral pricing. Unlike traditional oracles that may rely on centralized data sources, the FTSO aggregates price feeds from independent signal providers, delivering highly accurate and tamper-resistant data for collateral assets.

A friendly fork of Liquity V2 on Flare

Liquity is one of the most tried and tested CDP protocols in DeFi. Since launching in 2021, it has secured billions in collateral, kept its stablecoin peg through extreme market volatility, and proven the resilience of its redemption and stability pool design.

Liquity V2 keeps the core principles that made V1 trusted — immutability, decentralization, and security — while adding upgrades such as user-set borrowing rates, improved capital efficiency, and protocol-incentivized liquidity.

On Flare, users will be able to lock FXRP (a 1-to-1 representation of XRP) into the protocol to mint a stablecoin. For the first time, XRP holders gain access to a decentralized stable backed by their assets, enabling borrowing without selling, liquidity provision, and yield opportunities across DeFi.

Uniquely, borrowers on Flare can set the annual percentage rate (APR) they’re willing to pay. However, lower rates come with a tradeoff: the lowest interest rate positions are the first to be redeemed against if the stablecoin falls below its $1 peg.

Shortly after launch, support will expand to include stXRP, the liquid staking token from Firelight. That means XRP holders can put their staked XRP to work twice: earning staking rewards and using stXRP as collateral to mint stablecoins.

Why it matters

• First XRP-backed stablecoin: Flare becomes home to a decentralized stable collateralized by one of the largest crypto assets.
• Deeper integration of stXRP: Liquid staking token becomes composable, evolving into foundational collateral for DeFi.
• More activity for FAssets: Every minted stable drives usage of the FAssets system, strengthening the network and boosting liquidity flows.

To bootstrap adoption, the protocol will integrate rFLR incentives, which means users who utilize the minted stablecoin in the stability pool or decentralized exchange liquidity pools will be able to earn rFLR rewards.

The road ahead

This is just the beginning. Support for additional Flare-native collaterals such as FLR and more FAssets are planned, alongside expanded integrations with other DeFi apps in the ecosystem.

By bringing a proven model like Liquity V2 to Flare, we’re laying the foundation for stable, decentralized liquidity powered by XRP and enhanced by liquid staking.