Enosys has officially launched Enosys Loans, the first Collateralized Debt Position (CDP) protocol on the Flare network. This groundbreaking development enables XRP holders to mint a decentralized, overcollateralized stablecoin using their XRP assets for the first time.
The protocol initially supports two collateral types: FXRP (a 1:1 representation of XRP on Flare) and wFLR (wrapped Flare). The launch configuration sets a mint cap of $4 million for the FXRP branch and $1 million for the wFLR branch, with a minimum debt requirement of $500 per position (Trove).
A key feature is the integration with the Flare Time Series Oracle (FTSO) for decentralized, tamper-resistant collateral pricing. This system aggregates data from independent signal providers, aiming to prevent unnecessary liquidations during market volatility. The protocol is designed as a friendly fork of the battle-tested Liquity V2 model, incorporating its stability pool mechanics and immutable, decentralized architecture.
Borrowers on the platform have the unique ability to set their own Annual Percentage Rate (APR). However, positions with the lowest interest rates are the first to be redeemed against if the stablecoin's peg falls below $1, creating a market-driven mechanism for peg protection.
To bootstrap adoption, early users who deposit the minted stablecoin into the Stability Pool or provide liquidity on supported Decentralized Exchanges (DEXs) will be eligible for rFLR incentives. The protocol also generates real yield for stability pool participants from mint fees, interest payments, and liquidation rewards.
Support for staked XRP (stXRP) from Firelight is confirmed to be added shortly. This expansion will allow XRP holders to "double-dip"—earning staking rewards on their XRP while simultaneously using the liquid staking token (stXRP) as collateral to mint stablecoins, significantly enhancing capital efficiency.
The launch is seen as a major milestone for Flare's DeFi ecosystem, marking the first time XRP's substantial liquidity can be directly leveraged in decentralized finance. It is expected to drive increased usage of Flare's FAssets system and strengthen overall network liquidity. Enosys has outlined a roadmap that includes adding more Flare-native collateral types like FLR and further FAssets in the future.
