Kinetic, a lending protocol on the Flare network, posted a snapshot of its FXRP (XRP‑linked) market on November 1. The data showed approximately $24 million of FXRP supplied and $2 million borrowed, representing a utilization rate of 6.7%.
Base rate and rewards
The base annualized lender rate (APR) for the supplied FXRP was about 0.04% before any incentive rewards. The protocol’s official market page displayed a supply APY of 0.59%, which included a separate reward component of 0.55% paid in rFLR. DefiLlama’s isoFXRP pool listed a 30‑day average supply APY of 0.57%, broken down into a 0.04% base component and a 0.54% reward component (WFLR). The reward portion was therefore substantially larger than the base rate.
Comparison with USDT0 market
FlareSignal’s snapshot for the USDT0 market on the same day showed a utilization of 92.8% and a supply of about $5.04 million with $4.68 million borrowed, highlighting a much higher borrowing demand for the stablecoin compared with FXRP.
Collateral use
Kinetic allows supplied assets to be used as collateral for borrowing other assets, requiring over‑collateralization. This means that FXRP holders can access stablecoin liquidity while receiving minimal base interest on their supplied balance, with the primary return coming from reward emissions.
Protocol mechanics
FXRP is minted on Flare through the FAssets system, which locks native XRP in the XRP Ledger’s Core Vault and issues the corresponding FXRP token on Flare. Redemption of FXRP back to XRP involves burning the token and initiating a payment on the XRP Ledger, subject to fees and potential collateral claims if payment fails.
Implications
The snapshot indicates a sizable supply of FXRP relative to the amount borrowed, with rewards driving most of the quoted yield. Ongoing borrower demand and the interest paid on loans will be key to determining the sustainability of lender returns in this market.
