🪙 $XRP holder can now earn rewards without selling their Token.

XRP holders now have a way to earn yield without selling their tokens or navigating complex DeFi strategies, through the data-driven blockchain Flare's earnXRP, which is a fully on-chain yield product priced in XRP.
The new vault allows users to deposit FXRP, which is a one-to-one representation of XRP on Flare, and earn yields according to the press release, which will be compounded back into XRP. Users do not need to juggle multiple protocols; a single deposit is all it takes to receive earnXRP, which is the receipt token that tracks their share in the vault and its accumulated earnings.
Behind the scenes, the vault diversifies funds into various strategies, including XRP staking, providing liquidity, and arbitrage trading by borrowing low-cost stablecoins and investing them in higher-yield venues.
The significance of this launch lies in the fact that, despite the scale and liquidity of the token, a tiny portion of the XRP supply is currently used in DeFi. By maintaining yields denominated in XRP, earnXRP aims to attract holders who wish to earn yields without taking on the risks of stablecoins or active trading.
For Flare, the vault acts as a liquidity engine. Converting idle XRP into productive capital increases on-chain activity, deepens the market, and enhances Flare's FAssets system, allowing XRP to enter the smart contract environment.