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XRPFi Emerges as a New Path to Revitalize XRP
XRPFi, the integration of XRP and decentralized finance (DeFi), is increasingly seen by industry players as a new way to revitalize the veteran crypto asset XRP and drive growth for the XRP Ledger (XRPL) and Ripple ecosystem.
On June 10, the XRP Ledger Apex 2025 conference was held in Singapore, where the concept of "XRPFi" became a hot topic on social media. XRP is one of the most iconic assets in the crypto market, with a current market cap nearing $134.4 billion, making it the highest-valued non-smart-contract cryptocurrency after Bitcoin. Thanks to its fast, low-cost cross-border payment capabilities, XRP has stable applications in traditional finance. However, its lack of smart contract support has long hindered its integration into mainstream DeFi ecosystems, creating a structural contradiction that has drawn increasing attention.
With the SEC suspending its lawsuit against Ripple, Ripple's stablecoin RLUSD approaching a $390 million market cap, and ongoing speculation about an XRP ETF, investor expectations for XRP's future are rising. Institutions and retail investors alike are now exploring how XRP can leverage DeFi for yield generation and improved asset efficiency, fueling the birth and growth of the "XRPFi" concept.
Flare Powers XRPFi, Building a Multi-Chain Interoperable DeFi Ecosystem
In the current development of XRPFi, Flare Network is seen as a key infrastructure provider. While XRP Ledger (XRPL) excels in speed and stability, it has inherent limitations in composability and smart contract functionality—critical for DeFi. Thus, Flare has stepped in to technically empower XRP, serving as the core engine bridging traditional XRPL with multi-chain DeFi ecosystems.
Flare is an EVM-compatible Layer 1 blockchain designed for multi-chain interoperability. Its FAssets protocol enables non-smart-contract assets like XRP to be mapped as FXRP, granting them contract-calling capabilities for seamless integration into decentralized lending, trading, and derivatives protocols. This mechanism allows XRP holders to participate in mainstream on-chain yield activities like staking and liquidity mining.
Additionally, Flare has introduced USD₮0, a stablecoin issued under LayerZero’s OFT (Omnichain Fungible Token) standard, offering native cross-chain interoperability. Paired with XRP, USD₮0 can be used to build deep liquidity pools and lending collateral while connecting to the $155 billion USDT ecosystem, injecting high liquidity into XRPFi.
According to official data, Flare’s ecosystem has seen significant growth: as of June 10, its TVL surpassed $157 million, largely driven by USD₮0’s launch, with its supply now at approximately $92.1 million. From February 2024 to February 2025, Flare’s TVL grew over 400% year-over-year. Flare has also integrated XRPL-compatible wallets like Bifrost and Oxenflow to further lower user barriers.
Flare describes its XRPFi system as a "flywheel model": USD₮0 provides capital, FXRP enables contract composability, their pairing generates liquidity, which in turn attracts more DeFi applications and real-world use cases, ultimately enhancing XRP’s long-term ecosystem value.
Looking ahead, Flare plans to bring other non-smart-contract assets like Bitcoin and Dogecoin into its ecosystem, expanding their DeFi utility.
Building an XRPFi Yield Matrix: CeDeFi and On-Chain Strategies
While Flare enables on-chain compatibility, Doppler Finance has designed a comprehensive yield mechanism around XRP, addressing its historical lack of yield-bearing financial products. As of June 8, the platform has attracted over $30 million in TVL, emerging as a key player in the XRPFi space.
Doppler Finance offers two primary yield products: CeDeFi yield and on-chain DeFi strategies. The former involves institutional-grade custody and quantitative strategies, while the latter explores on-chain yield scenarios like lending, stablecoin strategies, and staking.
In CeDeFi mode, users deposit XRP into dedicated addresses, with assets custodied by firms like Fireblocks and Ceffu before being transferred to centralized exchanges for quantitative strategies like arbitrage and basis trading. Profits are settled off-chain and returned to user accounts.
For on-chain yield, Doppler is actively integrating with XRPL sidechains, including EVM-compatible networks and emerging protocols. Its strategies include:
XRP Lending: Depositing XRP into audited lending protocols to earn interest or native rewards, with automated liquidation for safety.
Stablecoin Yield Strategies: Borrowing stablecoins (e.g., USDC) against XRP collateral and deploying them into yield protocols, using conservative LTV ratios for low-risk returns.
Liquid Staking and Leverage Strategies: Enabling one-click leveraged staking in LST pools, particularly for sidechain tokens like ROOT, via automated contracts.
To mitigate risks, Doppler is building isolated lending markets where asset pools operate independently, preventing high-volatility assets from destabilizing the system. Beyond core pools (XRP, USDC, ROOT), it plans to launch specialized markets, including LST pools for leveraged yield farming and gaming tokens from the Futureverse ecosystem.
Given XRPFi’s cross-chain, custody, and advanced strategy execution requirements, security is a priority. Doppler employs multi-layered safeguards:
Custody: Partnering with top-tier providers (e.g., Fireblocks, Ceffu) and using cold wallets, on-chain verification, and bankruptcy isolation.
Quantitative Trading: Diversifying strategies and teams, structuring most operations as "loan contracts" to ensure principal recovery barring extreme scenarios.
Due Diligence: Vetting all trading partners based on historical performance, strategy stability, AUM size, and financial risk.
Filling the DeFi Gap: XRPFi’s Early-Stage Potential
As Ethereum’s DeFi ecosystem faces saturation, attention is shifting to high-market-cap assets like XRP that remain underutilized. XRPFi addresses XRP’s longstanding "high value, low on-chain utility" gap through technologies like Flare’s FAssets protocol, enabling its entry into DeFi. Doppler Finance is constructing sustainable yield mechanisms, from CeDeFi to liquid staking, with real-world viability and enhanced security.
Logically, XRPFi meets the urgent need to activate XRP and grow Ripple’s ecosystem. However, it remains early-stage: while Flare and Doppler have clear roadmaps, user adoption, liquidity depth, and protocol maturity are still unproven. Can an old asset thrive in a new narrative? PANews will continue to monitor its progress.
