Enosys Loans Launches the First XRP-Backed Stablecoin on Flare

Flare’s DeFi ecosystem just took a major step forward. Enosys has officially launched Enosys Loans, the first Collateralized Debt Position (CDP) protocol on the network—bringing a trustless, overcollateralized, XRP-backed stablecoin into the Flare ecosystem for the very first time.

The launch begins with support for FXRP and wFLR, with staked XRP (stXRP) coming next. For XRP holders, this unlocks something entirely new: borrow against XRP without selling it—while earning additional yield across Flare DeFi.

Loading tweet...

View Tweet

How the Launch Works

Users can now deposit FXRP or wFLR into Enosys Loans, open a CDP (“Trove”), and mint the new decentralized stablecoin. Initial configuration:

• FXRP mint cap: $4M

• wFLR mint cap: $1M

• Minimum debt per Trove: $500

• stXRP collateral: coming soon

Early users who stake the stablecoin in the Stability Pool or provide liquidity on supported DEXs become eligible for rFLR incentives, strengthening early adoption.

How CDPs Power a Decentralized Stablecoin

Enosys Loans follows the same model used by leading decentralized stablecoins across DeFi: Users lock collateral → mint stablecoins → collateral maintains the peg. With this system:

• XRP holders unlock liquidity without selling their assets

• The Stability Pool protects the system during liquidations

• Stakers earn real yield from mint fees, interest, and liquidation gains

A core advantage: pricing data comes directly from the Flare Time Series Oracle (FTSO)—a decentralized feed aggregated from independent signal providers. This removes reliance on centralized oracles and strengthens peg stability.

A Friendly Fork of Liquity V2 — Optimized for Flare

Liquity is one of DeFi’s most battle-tested stablecoin engines, known for its resilience and its ability to maintain peg stability through extreme volatility. Enosys Loans brings Liquity V2 to Flare, with enhancements including:

• User-defined borrowing rates

• Greater capital efficiency

• Protocol-incentivized liquidity

• Immutable, permissionless architecture

For the first time, XRP holders can mint a decentralized stablecoin backed by their own assets—opening pathways to borrowing, liquidity provision, and yield generation across the Flare ecosystem.
 
Borrowers pick their own APR, but with an important tradeoff: Positions with the lowest interest rates are redeemed first if the stablecoin dips below $1.

stXRP Makes XRP Twice as Productive

After launch, Enosys will add support for stXRP, the liquid staking token from Firelight. This allows XRP holders to:

• Earn staking rewards

• Borrow against their staked XRP

• Use stXRP across DeFi as a composable collateral asset

This is a key milestone for XRP’s evolution in DeFi—especially on Flare.

Loading tweet...

View Tweet

Why This Launch Matters

• Flare’s first XRP-backed stablecoin: A decentralized stablecoin collateralized by XRP now lives natively on Flare—unlocking new utility and liquidity.

• stXRP becomes foundational collateral: Liquid-staked XRP gains meaningful purpose across lending, trading, and yield strategies.

• Expanded usage of FAssets: Every newly minted stable boosts FAssets demand and strengthens network-wide liquidity flows.

• rFLR incentives accelerate early adoption: Users who mint, stake, or LP the stablecoin can earn rFLR—bootstrapping liquidity and ecosystem activity.

What’s Next for Enosys Loans

This launch is just phase one. Next up: support for additional collateral types like FLR and more FAssets, deeper integrations with Flare-native DeFi apps, and more advanced borrowing flows and cross-protocol liquidity routes—all aimed at building a stable, decentralized liquidity layer powered by XRP. 

To use Enosys Loans, bridge and mint FXRP at fassets.au.cc/mint or fasset.oracle-daemon.com/flare, then open a CDP at loans.enosys.global.