Clearstar doubles down on XRP yield as vault capacity grows @ClearstarLabs has raised the deposit ceiling on its earnXRP vault to 45 million FXRP on @FlareNetworks, equivalent to roughly $59
@ClearstarLabs has raised the deposit ceiling on its earnXRP vault to 45 million FXRP on @FlareNetworks, equivalent to roughly $59 million at current prices. The move gives XRP holders significantly more room to put idle capital to work, and it follows the arrival of new stablecoin borrowing venues that give the vault fresh avenues to deploy deposits.
FXRP is the wrapped, on-chain representation of XRP on Flare. It is a 1:1 ERC-20 representation of XRP that sits inside a single non-custodial vault, which deploys capital across multiple curated strategies and automatically compounds returns back into XRP. Inside the earnXRP structure, FXRP is used as collateral to borrow stablecoins at low cost, those stablecoins are then deployed into other DeFi protocols where yields exceed borrowing costs, and profits are compounded back into FXRP while the vault remains fully XRP-denominated.
The vault is accessible through the @XamanWallet Flare Yield app. Withdrawals follow a standard 72-hour window, with an instant-exit option available for a fee.
The cap increase is directly tied to growing infrastructure around FXRP borrowing. XRP holders can now use FXRP as collateral to borrow Ripple's RLUSD stablecoin on Ethereum via a new isolated market on Morpho Blue, managed by Sentora, which approved FXRP after reviewing its market behavior, oracle design, liquidity, and liquidation capacity under an institutional risk framework. Flare's wrapped token has been accepted as collateral by Sentora, which manages a $280 million lending pool of Ripple's RLUSD stablecoin.
Flare said the integration addresses one of the biggest challenges facing XRP DeFi: access to deep stablecoin liquidity, noting that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency. More borrowing capacity means the earnXRP vault can deploy larger positions, which in turn supports the higher deposit cap.
Only 0.1% of XRP supply is currently utilized in DeFi, despite the token being one of the largest cryptocurrencies by market capitalization. The earnXRP vault, originally launched with an initial cap of just 5 million FXRP, has grown steadily as Flare's on-chain ecosystem has matured. Target yields for the vault range from roughly 4% to 10%, depending on vault size.
Sources:Flare Network: EarnXRP Launches on FlareCoinDesk: XRP holders can now borrow RLUSD via $280 million lending poolThe Block: New XRP yield product earnXRP launches using Flare Network's infrastructure
