First-ever modular lending for XRP debuts on Flare via Morpho and Mystic

Flare DeFi continues to mature with the launch of Morpho, the universal lending network with $10B+ total deposits across EVM chains. On Flare, Morpho will power permissionless lending markets for XRP through Mystic, which will serve as the front-end interface for Morpho on Flare — simplifying access for users and curators alike.

The integration brings modular lending to Flare for the first time, marking a major milestone in the network’s XRPFi vision: transforming XRP from a dormant asset into a productive source of yield, credit, and composable strategy.

Why it matters for XRPFi

The XRP community has historically had limited access to sophisticated DeFi strategies, but Flare has already begun to change that by creating the foundations for XRPFi: FXRP, staking via Firelight, spot trading via Hyperliquid, yield tokenization through Spectra and many more use cases.

The Morpho and Mystic integration deepens and broadens this vision.

With modular lending now live, FXRP holders can:

• Deposit FXRP into curated, yield-bearing vaults
• Use FXRP as collateral to borrow stablecoins or other assets
• Integrate into structured yield strategies via Spectra
• Loop capital across staking, lending, and borrowing — all within Flare

This expands the toolkit for XRP holders, giving them new ways to earn, borrow, and strategize while the underlying XRP is retained on XRP Ledger.

Morpho makes XRP capital more capital efficient, composable, and productive than ever.

What is modular lending?

Traditional lending protocols rely on pool-based designs to concentrate liquidity and typically rely on governance/risk managers for listings and parameter changes; Morpho shifts more configuration to the market/vault level.

With Morpho’s architecture:

• Each market consists of just one collateral and one loan asset
• Risk is isolated at the market level
• Parameters (like LTV or liquidation thresholds) are set once at creation
• New markets can be launched permissionlessly by anyone; curated vaults then choose which markets to allocate into.

Think of it this way:

Each market is one collateral/loan pair.

Vaults allocate across multiple markets, optimizing for yield and risk. 

Meet the curators

Morpho builds on a known model for Flare users: curators, the independent risk managers who design and manage capital strategies.

First introduced during the Upshift launch, curators like Clearstar have already helped users access professionally managed yield vaults. With Morpho, this curator-led model is now extended to Flare’s lending layer.

Curators:

• Design and deploy modular lending vaults
• Configurate vault strategies and allocations across selected markets
• Allocate capital across isolated markets based on defined strategies

Instead of relying on protocol-wide governance, users can now select vaults that align with their personal risk and yield goals.

At launch, curators like Clearstar and Carpathian will offer vaults backed by USDT0, FLR, and FXRP, bringing curated strategies to modular lending, and adding new depth to the XRPFi toolkit.

What is Mystic’s role?

Morpho itself is neutral infrastructure. To make it accessible, Flare will be added to Mystic, a dedicated front-end designed to:

• Discover curated lending vaults
• Deposit assets to earn yield through managed strategies
• Borrow against supported collateral without selling holdings

Over time, additional interfaces may emerge, but Mystic is the primary entry point at launch. As the primary interface, Mystic will continue to abstract complexity over time, including support for 1-click looping strategies built on top of Morpho markets. Because the smart contracts are deployed by the Morpho team, they can eventually add front end Morpho support on the main app.

What you can do now

Here’s how you can start using modular lending and put your XRP to work:

🟡 Want passive yield?

Deposit FXRP, USDT0, or FLR into a curator vault and earn interest.

🟢 Need liquidity without selling?

Use FXRP as collateral to borrow stablecoins.

🧠 Want to unlock even more strategies?

Borrow against your position — while continuing to earn yield.

The addition of Morpho marks a new chapter in Flare’s DeFi evolution. By supporting both governance-driven protocols like Kinetic and modular, curator-led lending through Morpho, Flare gives users and builders more ways to participate in onchain finance in the way they want.

The launch is more than an integration, it’s a major step toward a composable, institution-grade XRPFi ecosystem and a glimpse at what programmable finance for digital assets like XRP looks like in practice.

Explore vaults at Mystic: https://app.mysticfinance.xyz