XRP DeFi Access Unlocked via $280M RLUSD Lending Pool

Woofun AI reports that XRP holders have gained direct access to Ethereum DeFi through a new lending mechanism facilitated by Flare. Sentora has accepted wrapped FXRP as collateral in its $280 million RLUSD pool, enabling users to leverage XRP exposure without selling assets on the Morpho Blue platform.

The isolated FXRP/RLUSD market operates on a permissionless basis, requiring no whitelist for entry. Sentora’s institutional risk framework evaluated FXRP’s oracle design, liquidity, and liquidation capacity before approval. Ongoing monitoring will ensure the asset meets strict standards, with the market structure designed to contain risk within the specific vault.

Users currently mint FXRP via Flare’s FAssets system and bridge it to Ethereum using Stargate. Loans are issued based on a chosen loan-to-value ratio after depositing the collateral. Flare is developing Smart Accounts to allow authorization directly from an XRP Ledger wallet, alongside direct XRPL-to-Ethereum minting capabilities.

Flare co-founder and CEO Hugo Philion emphasized that underwriting XRP on Ethereum mainnet holds more value than a simple bridge listing. The isolated market structure ensures that each collateral asset, debt asset, oracle, and liquidation threshold remains independent, preventing contagion to the broader vault.

Adoption metrics show 155 million FXRP minted against a six-month target of 5 billion XRP. The market launches with a conservative supply cap, which may increase with usage. Specific details regarding the supply cap, loan-to-value ratio, liquidation threshold, and oracle source remain pending confirmation from Flare and Sentora.