XRP Holders Can Now Earn Yield Without Selling Their Tokens:
The Flare Network has introduced an earnXRP product that makes it possible for XRP holders to generate income without being insulated against XRP price volatility.
The onchain vault enables individuals to lock FXRP, a one to one equivalent of XRP on flr, an equivalent with returns that are compounded back to XRP. This makes it unnecessary for one to sell their tokens or engage them actively or convert them to a stable coin for that extra return on their investment.
Instead of interacting with a number of DeFi applications, the user makes one deposit and is credited with earnXRP, a receipt token that represents the user's proportion and the resulting yield on the vault. The investment strategies can be autonomously managed and may involve XRP staking, liquidity supply, and carry trading, amongst other investment avenues.
One of its notable points is that it has been noticed that the total number of XRP in circulation that has been utilized in the decentralized finance space has been small compared to its degree of liquidity in the marketplace. For instance, by maintaining its returns in terms of XRP, the aim of earnXRP is to target this group of individuals.
For Flare, the earnXRP also has another role. Converting the idle XRP supply into productive funds is an activity that boosts activity on the chain, enhances liquidity, and is also beneficial for the Flare FAssets system since it allows XRP to be used in smart contract settings.
With the increasing demand for straightforward yield-bearing products, earnXRP goes on to explain how traditional assets such as XRP are slowly integrating their functionality from payment systems into the realm of on-chain finance without altering the underlying investment premise.
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