XRPFi: A New Way to Activate the XRP Ecosystem

Recently, the XRP Ledger Apex 2025 conference was held in Singapore, and the concept of "XRPFi" became a hot topic in the industry. XRPFi is the combination of XRP and decentralized finance (DeFi), seen as a new path to activate XRP, an established crypto asset, and promote the development of the XRPL and Ripple ecosystem.

As one of the representative assets in the cryptocurrency market, XRP currently has a market capitalization of nearly $134.4 billion, making it the highest non-smart contract cryptocurrency by market cap after Bitcoin. Although XRP has performed well in cross-border payments in traditional finance, it has long lacked smart contract support in its on-chain ecosystem, making it difficult to integrate into the mainstream DeFi ecosystem. As market expectations for XRP's future heat up, investors are beginning to focus on how to enhance the asset utilization efficiency of XRP through DeFi, which has driven the birth and development of the concept of XRPFi.

Flare Network: The Core Infrastructure of XRPFi

Flare Network plays a key role in the development of XRPFi. As an EVM-compatible L1 blockchain, Flare is designed specifically for multi-chain interoperability. Its FAssets protocol allows XRP to be mapped to FXRP, granting it the ability to be called by smart contracts, enabling XRP holders to participate in staking, liquidity mining, and other on-chain yield activities.

Flare has also introduced the USD₮0 stablecoin, which is a native asset issued based on the LayerZero OFT standard, featuring cross-chain interoperability. After pairing USD₮0 with XRP, it can not only be used to build trading depth pools and collateral for lending but also connects the USDT ecosystem, injecting high liquidity into XRPFi.

According to the data, the Flare ecosystem has seen significant growth recently. As of June 10, its TVL has surpassed $157 million, mainly due to the launch of USD₮0. In the long term, from February 2024 to February 2025, Flare's TVL is expected to grow by more than 400% year-on-year.

Flare describes its XRPFi system as a "flywheel model": USD₮0 provides the source of capital, FXRP achieves contract composability, and the pairing of the two brings liquidity, which in turn drives more DeFi applications and real-world scenarios, ultimately promoting the long-term ecological value of XRP.

Doppler Finance: Building the XRPFi Yield Matrix

Doppler Finance has designed a complete yield mechanism around XRP, aiming to make up for the deficiencies of XRP in terms of interest generation and financial products. As of June 8, the platform has attracted over $30 million in TVL, becoming an important participant in the XRPFi sector.

Doppler Finance mainly offers two types of yield products: CeDeFi yields and on-chain DeFi strategies. The CeDeFi model manages assets through institutional-grade custody and quantitative operations, while on-chain strategies explore yield scenarios such as lending, stablecoin strategies, and staking.

In terms of on-chain yield, Doppler is actively connecting with the XRPL sidechain ecosystem, including EVM-compatible networks and emerging protocols. Its main strategies include XRP lending, stablecoin yield strategies, as well as liquid staking and leverage strategies.

To reduce risk, Doppler Finance is building a risk-isolated lending market that allows different asset pools to operate independently. In addition to the core pool, multiple isolated markets are planned, including an LST pool specifically designed for leveraged yield farming and an isolated market that includes gaming tokens.

In terms of security mechanisms, Doppler Finance adopts multi-layer risk control measures. For asset custody, the platform selects top service providers in the industry and ensures asset safety through cold wallet management, on-chain verification, and bankruptcy isolation. In the quantitative trading aspect, the platform adopts a multi-strategy, multi-team collaboration model, and designs most operations as "lending contract structures" to ensure the safety of the principal.

The Prospects and Challenges of XRPFi

The emergence of XRPFi fills the long-standing gap of "high market value, low chain use" for XRP. With the technical support of the Flare network, XRP has entered the DeFi ecosystem. Doppler Finance is building a sustainable yield mechanism that not only has a practical path but also focuses on enhancing security and user experience.

However, it is important to note that the XRPFi ecosystem is still in its early stages. Although the product roadmap of Flare and Doppler is relatively clear, the overall user scale, liquidity depth, and protocol maturity still need to be validated. As an attempt for old assets to integrate into a new narrative, the development prospects of XRPFi are worth continuous attention.