FAssets v1.1 has officially launched on Songbird, marking a significant upgrade to Flare’s interoperable protocol. This release introduces major enhancements designed to bring decentralized finance (DeFi) capabilities to XRP through FXRP—a composable version of XRP tailored for DeFi applications. The upgrade focuses on improving liquidity, capital efficiency, and scalability, paving the way for broader adoption of XRP within the DeFi ecosystem.
The launch arrives at a pivotal time, as interest in XRP-powered DeFi solutions continues to grow. FAssets v1.1 addresses this demand by enabling unlimited minting capacity, reducing capital requirements for agents, and establishing a more scalable infrastructure. These improvements also set the stage for the upcoming deployment of FAssets on the Flare mainnet.
How FXRP Minting Works
The process of minting FXRP involves a structured flow between users, agents, and the Songbird network. Below is a step-by-step breakdown:
Step 1: User Initiates Minting
A user on the XRP Ledger (XRPL) sends XRP to a registered agent’s address on the same ledger. This initiates the minting request.
Step 2: Agent Provides Collateral
The agent, who operates on both XRPL and Songbird, receives the XRP and locks collateral on the Songbird network. This collateral typically consists of XRP, SGB (which will be replaced by FLR on the mainnet), and stablecoins. The total collateral value must meet or exceed 130% of the FXRP being minted, as defined by the safety collateral ratio. This requirement ensures system security and mitigates risks related to market volatility.
Step 3: FXRP Is Minted on Songbird
After the collateral is secured and the XRP transfer is verified via the Flare Data Connector, the system mints an equivalent amount of FXRP. The newly minted tokens are delivered to the user’s address on Songbird.
Step 4: Community Pool Support (Optional)
Liquidity providers can contribute additional collateral through community pools. By depositing FLR or SGB, these providers help bolster agents’ collateral reserves and earn a share of minting fees in return.
Note: Once FAssets launches on the Flare mainnet, "Songbird" will be replaced with "Flare" in the process.
Key Features of FAssets v1.1
Core Vault
The Core Vault is a central innovation in FAssets v1.1, designed to enhance liquidity and scalability. It functions as a hub where agents can deposit XRP and unlock their FLR collateral on Songbird and Flare. This allows agents to reuse collateral for additional minting or other purposes, significantly improving capital efficiency.
The vault also acts as a safety buffer during periods of high demand, helping to stabilize the system. 👉 Explore more strategies for leveraging vault-based systems
Note for users: The Core Vault is primarily used by agents and KYC-approved participants. Full functionality—including access, transfers, and redemptions—will be phased in gradually. Current minting capacity is capped at 750,000 FXRP but is designed to scale toward unlimited capacity.
Multi-Layered Security
Security is a top priority in FAssets v1.1. The Core Vault employs a multi-layered model that combines timed escrow accounts with multi-signature authorization. Escrow accounts lock vault funds for predefined periods, while multi-signature controls are managed by entities committed to Flare’s long-term growth.
XRP held in the vault is stored in escrow, with daily releases to minimize risk. In case of threats, the Flare Foundation can activate an Alert Mode to freeze operations. Additionally, the system has undergone audits and hosts active bug bounty programs on platforms like Immunefi.
Scalability
By reducing agents’ capital burdens and streamlining minting workflows, FAssets v1.1 supports unlimited minting capacity. This scalability is crucial for accommodating growing demand and fostering ecosystem expansion.
Deployment Details
At launch, the Core Vault is managed by three multi-signature signers, with plans to include more trusted parties over time. To ensure a stable rollout, the initial minting cap is set at 750,000 FXRP, which will increase based on demand and network capacity.
A dedicated user interface provides real-time monitoring of vault balances, inflows, and outflows, offering transparency to agents and the community.
Ecosystem and Incentives
Unlike previous versions, FAssets v1.1 does not include redemption incentives for FXRP, thanks to improved capital efficiency and long-term deployment plans. However, bi-weekly incentives will be distributed to SGB collateral providers via the Flare Portal, encouraging liquidity and system participation.
These incentives aim to maintain an active collateral supply, ensuring the system remains responsive to market needs and supports a thriving XRP DeFi landscape.
Retroactive Airdrop
A retroactive airdrop worth $135,000 in rFLR will be distributed on May 28, 2025, to reward early community members who participated in testing on Coston. The airdrop will reach the 10,000 most active users.
Eligibility Requirements:
- Held FAssets within specified limits on the snapshot date
- Participated in FAssets activity on Songbird (v1 or v1.1)
- Had a history of staking or delegation on Flare or Songbird
Claiming details will be announced closer to the distribution date.
Transition from FAssets v1
FAssets v1.1 seamlessly upgrades FXRP from the previous version, requiring no action from holders. Token contracts and addresses remain unchanged.
However, FDOGE on FAssets v1 will begin winding down on May 21, 2025. Minting interfaces will be disabled, and redemptions will remain available for 30 days before full deactivation. FDOGE holders are advised to redeem or swap tokens via supported platforms.
Collateral providers do not need to manually adjust their setups, as v1.1 is backward-compatible with existing arrangements.
Note: While FAssets is designed to support assets like DOGE and BTC, v1.1 initially supports only XRP. Additional assets may be added in future updates.
Getting Started with FAssets
You can begin minting FXRP today through approved portals like OracleDaemon or FAssets.au. Note that FAssets v1.1 is currently live only on Songbird—a canary network for testing. This environment has limited use cases and no incentives for participation. The primary goal is to evaluate system robustness before the mainnet launch.
The upcoming mainnet deployment will enable trustless XRP integration on Flare, starting with a restaking protocol that offers rewards and new DeFi opportunities. By bridging XRP’s liquidity to Flare’s composable ecosystem, FAssets could accelerate the XRPFi movement.
Frequently Asked Questions
What is FXRP?
FXRP is a composable representation of XRP on the Flare network, enabling XRP holders to participate in DeFi applications such as lending, staking, and trading without leaving the ecosystem.
How does the Core Vault improve scalability?
The Core Vault allows agents to recycle collateral, reducing the need for new capital per minting cycle. This efficiency supports higher throughput and unlimited minting capacity over time.
Is my FXRP safe during the upgrade?
Yes, the upgrade from v1 to v1.1 is seamless. Token contracts remain unchanged, and no user action is required.
Can I mint assets other than XRP with FAssets v1.1?
Currently, only XRP is supported. Support for other assets like DOGE or BTC may be reintroduced in future versions.
What happens if the collateral ratio falls below 130%?
The system requires agents to maintain a safety collateral ratio of at least 130%. If volatility causes a shortfall, agents must add collateral to avoid liquidation or system penalties.
How do I participate as a liquidity provider?
You can contribute FLR or SGB to community pools via approved platforms. In return, you earn a share of minting fees and may qualify for incentive programs.