What Just Launched — and Why It’s a Big Deal
Flare’s DeFi ecosystem reached a long-awaited milestone this month as Enosys officially rolled out Enosys Loans, a Collateralized Debt Position (CDP) protocol that lets users mint a decentralized stablecoin backed by XRP for the first time. The launch begins with FXRP and wFLR, with stXRP support close behind — a move that could significantly increase callable liquidity tied to the XRP ecosystem. Under the initial configuration, mint caps sit at $4 million for FXRP and $1 million for wFLR, with a minimum debt of $500 per position. The design echoes the model popularized by Liquity, but adapted for Flare’s infrastructure and pricing oracles. For XRP holders, this offers a long-sought opportunity: unlocking liquidity without selling their assets, while tapping into Flare’s yield, liquidity pools, and stability pool rewards — which launch with fresh rFLR incentives.
Investor Takeaway
XRP finally steps into the decentralized stablecoin arena. This creates new borrowing, liquidity, and yield channels for one of crypto’s largest asset communities — and positions Flare as the ecosystem where XRP becomes financially composable.
How Does the XRP-Backed CDP System Actually Work?
The foundation of Enosys Loans is a CDP engine that lets users post collateral and mint a stablecoin against it. FXRP — a one-to-one representation of XRP on Flare — acts as the primary collateral, backed by real-time pricing from the Flare Time Series Oracle (FTSO). Instead of relying on a single oracle provider, the FTSO aggregates data from multiple independent signal sources, giving Flare one of the most decentralized pricing systems in any L1 ecosystem. That detail matters: accurate and tamper-resistant pricing helps CDPs avoid unnecessary liquidations during volatile swings. The protocol also mirrors Liquity’s stability pool mechanics. Users who stake the newly minted stablecoin into the pool help absorb liquidations, and in return, earn rewards drawn from mint fees, interest payments, and liquidation proceeds. It’s one of the key designs that helped Liquity survive extreme market drawdowns — and Enosys is betting it will offer similar resilience on Flare.
How Does This Compare to Other Stablecoin Models?
Flare is not the first chain to host a CDP-minted stablecoin — but it is the first ecosystem to extend that model to XRP. That alone distinguishes the launch from the broader field. XRP’s enormous liquidity base, historically siloed outside of DeFi, now has a pathway into collateralized lending, LP strategies, and structured yields. Another unique twist: borrowers can set their own borrowing APR. Lower rates are cheaper but riskier — positions with the lowest APR are the first to be redeemed if the stablecoin slips off its peg. It’s a mechanism that blends user choice with peg protection, creating market-driven pricing for debt. Once stXRP (from Firelight’s liquid staking system) goes live, users will be able to mint stablecoins against yield-bearing collateral — effectively stacking staking rewards with CDP liquidity. For capital-efficient DeFi strategies, that’s a powerful combination.
Investor Takeaway
The launch brings XRP into modern DeFi mechanics for the first time. With stXRP on the horizon, the market may see a surge in leveraged liquidity and new structured strategies built around XRP collateral.
What Comes Next for Flare and Enosys?
The launch opens the door to significantly more activity around Flare’s FAssets system, as each minted stablecoin drives additional usage and liquidity across the network. Enosys has also confirmed plans to add new collateral types beyond FXRP and wFLR — including native FLR and additional FAssets — broadening the stablecoin’s backing base and its integration potential across Flare DeFi. From a broader perspective, this deployment signals that Flare is shifting into a more mature phase of its ecosystem lifecycle. Over the past year, the chain has focused on oracle infrastructure, interoperability, and asset representation. Now, with a functioning CDP engine, it gains one of the most important building blocks of a full-scale DeFi economy: a decentralized, overcollateralized stablecoin with a large, established asset behind it. If adoption builds steadily — especially once stXRP comes online — Flare could evolve into the primary home for collateralized XRP liquidity, unlocking new cross-chain use cases and bolstering Flare’s ambitions to become a data-rich, highly composable L1.