Flare (FLARE) recently made a big change that allows traders to utilize real XRP (XRP) tokens in the world of DeFi. On May 14, Flare rolled out its FAssets on Songbird, introducing non-smart contract assets to DeFi, as detailed in a note shared with crypto.news. This network will give users the ability to engage in complex DeFi activities with assets like Bitcoin (BTC) and Dogecoin (DOGE), with XRP being the first asset available due to its Core Vault now being live on the XRP Ledger.
Who is involved in this upgrade and what are the major changes?
Hugo Philion, the Co-founder and CEO of Flare, emphasized the importance of this upgrade in providing real utility to XRP. He highlighted the significance of building a protocol that caters to the vast XRP asset, ensuring it becomes usable in the DeFi world. With this enhancement, users can now actively participate in various DeFi operations using XRP, including lending, borrowing, yield farming, and staking.
What sets Flare’s FXRP apart from other similar assets?
One major distinction lies in the custody and security features of Flare’s FXRP compared to other bridged assets. In the past, bridged assets posed significant security risks due to users having to relinquish custody to third parties. This vulnerability often led to exploits and rug pulls, resulting in substantial losses. A Chainalysis report revealed that in 2022, cross-chain bridges were responsible for over $1 billion in losses due to security breaches. These bridges accounted for a whopping 70% of all losses in the crypto space, showcasing the risks associated with custody and technical complexities in the realm of DeFi.
