Spectra Launches Yield Tokenization Platform on Flare, Starting with sFLR and stXRP Markets

Spectra, a permissionless yield-derivatives protocol, has officially launched on the Flare network, introducing a novel financial layer that separates an asset's principal value from its future yield. This launch enables the creation of native, tradable yield markets on Flare for the first time.

The core innovation is the splitting of any interest-bearing token into two distinct, tradable components: a Principal Token (PT) and a Yield Token (YT). The PT represents the underlying principal amount and is designed to mature to its full face value, allowing holders to lock in predictable, fixed returns. The YT carries the rights to the asset's variable future yield, enabling independent trading for speculation or hedging against changes in yield rates.

The protocol's initial market is centered on sFLR, the liquid-staked FLR token issued by Sceptre. Liquidity providers (LPs) supply balanced positions to support both PT and YT markets, earning swap fees from trades and potentially receiving additional protocol incentives like rFLR or SPECTRA tokens. The team's immediate priority is deepening this liquidity to reduce swap costs and stabilize pricing.

Spectra has confirmed plans to integrate Firelight's newly introduced stXRP, a liquid staking token for XRP on Flare, shortly after the sFLR launch. This will expand the range of income-generating assets available for tokenization on the platform.

The protocol operates on a permissionless model, allowing any user to create yield-trading markets for supported assets like sFLR or FAssets and collect fees. For user accessibility, Spectra offers a Fixed Rate module—a simplified entry point where users can pay an amount upfront to receive a known, higher amount at maturity without engaging in complex YT trading or liquidity provision.

Beyond individual trading, the modular design of PTs and YTs is intended to boost capital efficiency across the Flare ecosystem. These tokens can serve as composable building blocks for other DeFi protocols—such as Mystic or Morpho—for use in lending, collateralization, or structured products, creating financial instruments that previously did not exist natively on Flare.