Flare announced a major update allowing the use of XRP in DeFi, minimizing risks linked to traditional blockchain bridges.
Goals of Flare's Update
Flare's update, launched on May 14, includes the ability to use real XRP tokens in DeFi, facilitating complex operations with assets such as Bitcoin and Dogecoin. XRP will be the first asset available on the platform since its associated Core Vault is now accessible on the XRP Ledger.
Benefits of FXRP
FXRP differs from traditional bridges in that users do not lose custody of their assets. Instead, they can lock their assets in non-custodial Vaults, allowing smart contracts to automatically issue equivalent tokens like FXRP. This offers enhanced security and reduces risks.
Risks and Issues of Traditional Bridges
Previous bridges have often posed significant security threats, as users had to relinquish control of their assets to third parties. In 2022, over $1 billion in losses were reported due to security breaches, with bridges accounting for 70% of all losses in the crypto space.
Flare's update provides XRP with new opportunities in DeFi, ensuring secure and efficient asset usage without the relinquishing of control to third parties.
