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Top 3 takeaways from Messari’s Flare Pulse Report

Flare Updates

Messari’s latest Pulse Report spotlights Flare’s emergence as the network turning XRP into a powerful engine for decentralized finance (DeFi). With trust-minimized infrastructure, real yield opportunities, and a radically composable data layer, Flare is laying the foundation for a new era of cross-chain value creation — starting with XRPFi.

Here are the top three takeaways from the report:

FXRP and FAssets open the door to XRPFi

Historically, XRP holders haven’t been able to fully access DeFi due to XRPL’s limited smart-contract capabilities. Flare solves this by enabling users to mint FXRP, a fully collateralized, non-custodial ERC20 version of XRP, minted using the FAssets system. With FXRP, users can lend, borrow, yield farm, and participate in the full range of DeFi activities while retaining ownership of their original XRP. 

FAssets FXRP Creation Workflow

FAssets uses 2x overcollateralization to ensure strong protection for users even in volatile markets. The recent FAssets v1.1 upgrade, live on Songbird, introduced the Core Vault, a liquidity hub that provides more capital efficiency and scales FXRP minting. Crucially, FXRP is powered by Flare’s native oracle infrastructure — the Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC) — which delivers verifiable cross-chain activity and oracle feeds without relying on external middleware. This makes FXRP far more secure and composable than traditional bridges.

Institutional interest from players like Uphold and VivoPower, which together manage billions in XRP, validates Flare’s approach and signals the rising momentum behind XRPFi.


USD₮0 supercharges Flare’s DeFi liquidity layer

Flare recently integrated USD₮0, an omnichain, fully composable version of Tether. The integration of USD₮0 led to explosive growth in network liquidity. In just 13 days, Flare’s Total Value Locked (TVL) surged from ~$37 million to over ~$120 million. USD₮0 alone currently represents over 63% of Flare’s stablecoin liquidity, higher than USDC (19.1%) and USDX (17.7%).

Since the launch of USDTO on Flare Network TVL increased 301

USD₮0 serves as the backbone of new DeFi apps and is being aggressively supported via:

  • A USD₮0 Boost Program offering up to 30% APY in rFLR rewards
  • Fee-free gas transfers using USD₮0
  • Major exchange listings including Kraken

stXRP brings yield and utility with XRP liquid staking

Flare is bringing liquid staking to XRP with the upcoming launch of stXRP on Firelight. Users stake FXRP in Firelight’s Launch Vault and receive stXRP (1:1 ratio) — an ERC-20 token that remains liquid and usable throughout DeFi while the underlying FXRP contributes to secure Secured Services. These secured services are third parties who aim to leverage the security provided by the stake to secure their applications.

stXRP contributes to the DeFi flywheel:

  • Use stXRP as collateral to borrow other assets, unlocking liquidity without selling and while still earning staking rewards such as reward FLR (rFLR)
  • Provide liquidity with stXRP on a DeX to earn trading fees on top of the base yield
  • Utilize stXRP in more complex protocols like Cyclo Finance for liquidation-free leverage

To ensure systemic resilience:

  • Unstaking cooldown periods mitigate liquidity shocks from sudden redemptions
  • Slashing mechanisms penalize poor operator performance, with risk socialized across vault participants
stXRP Architecture - Messari


For more in-depth insights, read the full Messari Pulse Report: https://messari.io/report/flare-expanding-xrp-s-role-in-defi