The first XRP-backed stablecoin has officially gone live on Flare through Enosys Loans, marking a major DeFi milestone for XRP holders and the Flare ecosystem.
Key Takeaways
- Enosys Loans launched as the first CDP protocol on Flare, enabling users to mint a stablecoin backed by FXRP and wFLR.
- Within hours of launch, $3.6 million in total value was locked (TVL), with 1.6 million CDP minted, including $1 million backed by XRP.
- The system uses Flare’s Time Series Oracle (FTSO) for decentralized pricing and rewards users with rFLR for stability and liquidity contributions.
- Support for staked XRP (stXRP) is coming soon, allowing holders to earn while borrowing.
What Happened?
Enosys Loans, a decentralized borrowing protocol built on the Flare blockchain, officially launched in December 2025. It introduced the first ever stablecoin on Flare backed by XRP, allowing users to mint a fully decentralized and overcollateralized stable asset without selling their XRP. Within hours of its debut, the platform reached $3.6 million in TVL and minted 1.6 million CDP, signaling rapid adoption by the community.
1,000,000 CDP Minted!
— Ēnosys (@enosys_global) December 10, 2025
Thank you so much to the Flare Community for your support!$stXRP Loans are up next! pic.twitter.com/lXPT147bjk
Enosys Loans Introduces XRP-Backed Stablecoin on Flare
The launch of Enosys Loans marks a big leap forward for decentralized finance (DeFi) on Flare. It enables XRP holders to deposit their FXRP or wFLR as collateral and mint a new stablecoin, unlocking liquidity without giving up ownership of their crypto. The initial minting cap is $4 million for FXRP and $1 million for wFLR, with a minimum debt of $500 per CDP.
A key innovation is the upcoming integration of staked XRP (stXRP) as collateral, allowing users to earn staking rewards while minting stablecoins, essentially putting their assets to work in two ways.
How the CDP System Works?
The protocol is based on a Collateralized Debt Position (CDP) model, popularized by platforms like Liquity. This setup lets users mint a dollar-pegged stablecoin by overcollateralizing their crypto assets. The system includes a stability pool, which protects against liquidation risks and rewards participants with yield from mint fees, interest, and liquidations.
Enosys Loans is built as a friendly fork of Liquity V2, retaining core features like decentralization and immutability, while adding improvements such as:
- User-set borrowing rates.
- Increased capital efficiency.
- Protocol-incentivized liquidity.
Borrowers can choose the APR they are willing to pay, though lower interest rates place them at higher redemption risk if the stablecoin price dips below its $1 peg.
Flare’s Decentralized Oracle Powers Accurate Pricing
At the heart of the Enosys system is the Flare Time Series Oracle (FTSO), which aggregates real-time data from independent sources to provide reliable and tamper-resistant pricing for collateral assets. This decentralized approach boosts trust and transparency in how collateral is valued.
Strong Start With TVL and Minted CDP
Just hours after launch, Enosys Loans achieved a total value locked (TVL) of $3.6 million, and 1.6 million CDP were minted. Notably, $1 million of this was backed by XRP, highlighting the immediate demand for an XRP-based stablecoin solution on Flare.
Early users who mint the stablecoin and deposit it into the stability pool or provide liquidity on decentralized exchanges are eligible for rFLR incentives, designed to encourage participation and strengthen the network’s liquidity.
CoinLaw’s Takeaway
I’m genuinely impressed by how fast Enosys Loans gained traction. In my experience, DeFi projects usually take days or even weeks to see meaningful adoption, but this one hit $3.6 million TVL overnight. That kind of momentum shows real hunger for XRP-native DeFi. I also love how the protocol lets you earn staking rewards while borrowing, something that gives your assets more utility. If you’re holding XRP, this is one of the most interesting ways I’ve seen to put it to work without selling it.
