# 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

By Lidia Yadlos · December 11, 2025

Canonical: https://blockster.com/enosys-loans-launches-the-first-xrp-backed-stablecoin-on-flare

_**[Flare’s](https://flare.network/)**_ _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.

[Post from @FlareNetworks on X](https://twitter.com/FlareNetworks/status/1999110423744815582?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1999110423744815582%7Ctwgr%5E22318480cdc3cb0b19447fd7193fe92284608114%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fblockster.com%2Fenosys-loans-launches-the-first-xrp-backed-stablecoin-on-flare)

## 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](https://blockster.com/firelight-protocol-brings-xrp-staking-to-defi-in-partnernship-with-flare-network)** become eligible for **rFLR incentives**, strengthening early adoption.

## How CDPs Power a Decentralized Stablecoin

**[Enosys Loans](https://loans.enosys.global/)** 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.

[Post from @FlareNetworks on X](https://twitter.com/FlareNetworks/status/1998939163387650359?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1998939163387650359%7Ctwgr%5E22318480cdc3cb0b19447fd7193fe92284608114%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fblockster.com%2Fenosys-loans-launches-the-first-xrp-backed-stablecoin-on-flare)

## 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](https://fassets.au.cc/mint)**_ _or_ _**[fasset.oracle-daemon.com/flare](http://fasset.oracle-daemon.com/flare)**__, then open a CDP at_ _**[loans.enosys.global](http://loans.enosys.global)**__**[.](https://loans.enosys.global/)**_