First-Ever XRP-Backed Stablecoin Loans Go Live on Flare via Enosys

The Web3 software development entity Enosys has introduced a new type of stablecoin loan to the interoperability layer-1 network, ￰0￱ loans are backed by Ripple’s native cryptocurrency, ￰1￱ to a press release sent to CryptoPotato , a Collateralized Debt Position (CDP) protocol will power the ￰2￱ will allow XRP holders to mint overcollateralized stablecoins on ￰3￱ XRP-backed Stablecoin Loans on Flare Enosys explained that the XRP holdings will back the stablecoins, ensuring they maintain a value close to $1. Through this approach, XRP holders can access the value of their assets without having to sell ￰4￱ CDP protocol to be deployed on Flare is called ￰5￱ claims Liquity is one of the most tried and trusted protocols in the decentralized finance (DeFi) ￰6￱ its launch in 2021, the network has secured billions of dollars in collateral and kept its stablecoin peg amid extreme market ￰7￱ mechanism at the core of Liquity’s success is the protocol’s stability ￰8￱ pool allows users to stake their stablecoins for yield coming from mint fees, liquidation rewards, and interests paid on ￰9￱ mechanism makes sure the protocol can cover outstanding debt in the event of ￰10￱ will release a fork of Liquity V2 on Flare, maintaining the features that made the first version ￰11￱ only changes made will be upgrades like protocol-incentivized liquidity, capital efficiency, and user-set borrowing ￰12￱ to DeFi Yield Opportunities The alliance between Enosys and Flare will affect a select Flare-native tokens for ￰13￱ include Flare XRP (FXRP) and Wrapped Flare (wFLR).

The companies intend to expand the capabilities to staked XRP (stXRP) soon, allowing Ripple holders to put their assets to ￰14￱ can lock their FXRP on Flare and mint a stablecoin, which can provide liquidity and access to DeFi yield ￰15￱ borrowers can set the annual percentage rate (APR) they’re willing to pay, lower rates come with a ￰16￱ the stablecoin falls below its $1 peg, loans with the lowest interest rates will be redeemed first. “This is just the ￰17￱ bringing a proven model like Liquity V2 to Flare, we’re laying the foundation for stable, decentralized liquidity powered by XRP and enhanced by liquid staking,” the Enosys team stated. Meanwhile, Enosys Loans will also be utilizing data from the Flare Time Series Oracle (FTSO) to implement decentralized collateral pricing.