XRP Holders Get New Yield Opportunity via Flare and Monarq Collaboration

The decentralized finance (DeFi) applications blockchain network Flare has unveiled a new XRP yield product in collaboration with digital asset manager Monarq and vault infrastructure provider Upshift.

According to a press release sent to CryptoPotato, the new product is a multi-strategy XRP vault offering diversified yield opportunities. Launched on Flare and accessible to XRP holders, the Monarq XRP Yield Vault (MXRPY) is powered by Monarq and built on Upshift’s vault infrastructure.

MXRPY Offers Diversified Yield

MXRPY allocates capital across three strategies: options trading, basis and funding rate arbitrage, and on-chain XRPFi deployment. Users deposit Flare XRP (FXRP), receive MXRPY tokens representing their capital and accrued yield, and expect returns from the three primary engines.

The first return engine uses XRP as collateral to support options strategies across several platforms and over-the-counter products. Through the second strategy, XRP is deployed in funding rates and market-neutral basis using borrowed stablecoins across major platforms. For the third engine, the vault allocates the capital into Flare-native XRP Finance (XRPFi) opportunities and DeFi applications.

With an initial deposit cap of 500,000 FXRP, the vault targets a range of 3% to 4% annual percentage yield (APY) distributed over time based on strategy, performance, and market conditions. The product is accessible through Upshift; the platform processes withdrawals weekly, every Friday, with an optional fee-based instant redemption mechanism available.

Monarq’s managing partner, Shiliang Tang, commented on the launch, saying: “A real financial system needs a broader menu of options. MXRPY is built to be one of those options for XRP holders.”

MXRPY App Coming Up

While MXRPY expands the scope of XRPFI beyond Flare, it adds to the rapidly growing list of products on the DeFi applications network. Over the past months, Flare has launched several yield-bearing products, including lending markets, for XRP holders. The latest launch combines on-chain and off-chain execution in a structure that provides XRP holders with diversified yield opportunities.

“The Clearstar EarnXRP vault showed that there is real demand for XRP-denominated vaults on Flare. Upshift provided the infrastructure behind that launch, and we’re now expanding the model with Monarq, a second XRP vault with a different strategy profile and a broader set of yield sources,” remarked Upshift’s growth lead, Ethan Luc.