Flare Launches First Modular XRP Lending Markets via Morpho Integration

• The integration delivers modular lending to Flare for the first time, marking a critical milestone in the network’s XRPFi vision.
• Flare has been creating the foundations of XRPFi via infrastructure like as FXRP, staking via Firelight, spot trading using Hyperliquid, and dividend tokenization with Spectra.

Flare today announced the launch of the first modular lending markets for XRP on the network via an interface with Morpho, a prominent modular lending protocol with more than $10 billion in total value locked across EVM-compatible blockchains. The implementation offers permissionless lending for FXRP on Flare, with Mystic acting as the front-end interface for Morpho on Flare – easing access for users and curators alike.

The integration delivers modular lending to Flare for the first time, marking a critical milestone in the network’s XRPFi vision: converting XRP from a dormant asset into a productive source of income, credit, and composable strategy.

Historically, XRP holders have had limited access to complex DeFi methods. Flare has been creating the foundations of XRPFi via infrastructure like as FXRP, staking via Firelight, spot trading using Hyperliquid, and dividend tokenization with Spectra. The inclusion of Morpho and Mystic enhances this paradigm by allowing lending and borrowing use cases that maintain XRP on the XRP Ledger while unlocking onchain usefulness.

FXRP holders may now deposit assets into carefully chosen, yield-bearing vaults, borrow stablecoins or other supported assets using FXRP as collateral, and incorporate lending positions into structured strategies thanks to Flare’s implementation of modular lending. Within a single ecosystem, these features enable users to loop funds between lending, borrowing, and staking.

Morpho’s modular architecture varies from standard pool-based lending procedures by isolating risk at the individual market level. Each market supports a single collateral and loan asset, with specifications such as loan-to-value ratios established at creation. While curated vaults distribute funds across certain markets according to predetermined risk and return goals, markets might be formed without approval.

The integration also extends Flare’s curator-led concept to the lending layer. Independent curators create and operate modular lending vaults, choosing marketplaces and adjusting allocations without depending on protocol-wide governance. Curators like Clearstar are providing vaults backed by assets like FXRP, FLR, and USDT0 from launch.

To make Morpho’s infrastructure available on Flare, the network has been introduced to Mystic, a customized front-end that lets users to find curated vaults, deposit assets to earn interest, and borrow against supported collateral. Mystic serves as the primary entry point upon launch, with more interfaces like Morpho main app coming later time.

The introduction follows Flare’s overall ambition to enable alternative lending types and provide consumers more choice in how they engage in onchain financing. Flare continues to develop its concept of a composable XRPFi ecosystem by fusing current DeFi primitives with modular, curator-led lending.

Digital assets like XRP may take part in decentralized financial applications thanks to Flare Network, a Layer 1 blockchain. Through its smart contract architecture, Flare opens yield-generating options for historically non-yielding assets while preserving institutional-grade security and compliance requirements.