XRPFi: A New Exploration of the XRP Ecosystem in the Decentralized Finance Field

Recently, the XRP Ledger Apex 2025 conference was held in Singapore, and the "XRPFi" concept has attracted widespread attention. XRPFi combines XRP with Decentralized Finance (DeFi) and is seen as a new path to activate XRP, an established cryptocurrency asset, and promote the development of the XRPL and Ripple ecosystem.

XRP, as one of the representative assets in the cryptocurrency market, currently has a market capitalization of nearly $134.4 billion, making it the highest valued non-smart contract cryptocurrency after Bitcoin. Although XRP has been applied in traditional finance due to its fast and low-cost cross-border payment capabilities, it has long lacked smart contract support in the on-chain space, making it difficult to integrate into the mainstream Decentralized Finance ecosystem. As market expectations for XRP's future gradually heat up, investors are beginning to focus on how to enhance the asset utilization efficiency of XRP through DeFi.

Flare Network: Infrastructure Provider for XRPFi

In the development of XRPFi, Flare Network is seen as a key infrastructure. As an EVM-compatible L1 blockchain, Flare is designed for multi-chain interoperability. Its FAssets protocol can map XRP to FXRP, granting it the ability to call smart contracts, thereby seamlessly integrating with decentralized lending, trading, and derivatives protocols.

Flare also introduced the USD₮0 stablecoin as a native asset issued based on the LayerZero OFT standard. After pairing with XRP, USD₮0 can not only be used to build trading depth pools and lending collateral but also connect to the USDT ecosystem with a market value of over $155 billion, injecting high liquidity into the XRPFi ecosystem.

According to data, the Flare ecosystem has seen significant growth recently: as of June 10, the TVL has surpassed $157 million. From February 2024 to February 2025, Flare's TVL has increased by over 400% year-on-year. Flare describes its XRPFi system as a "flywheel model": providing a source of capital at USD₮0, FXRP enables contract composability, and the pairing of the two brings liquidity, which in turn drives more DeFi applications and real-world scenarios, thereby enhancing the long-term ecological value of XRP.

Doppler Finance: Building the XRPFi Yield Matrix

Doppler Finance has designed a complete yield mechanism around XRP, aimed at filling the gap in XRP's interest-bearing and financial products. As of June 8, the platform has attracted over $30 million in TVL, becoming an important player in the XRPFi space.

Doppler Finance offers two main types of yield products: CeDeFi yield and on-chain DeFi strategies. The CeDeFi model manages assets through institutional-grade custody and quantitative operations, while on-chain DeFi strategies explore yield scenarios such as lending, stablecoin strategies, and staking.

In terms of on-chain yield, Doppler is actively connecting with the XRPL sidechain ecosystem, including EVM-compatible networks and emerging protocols. Its strategies include XRP lending, stablecoin yield strategies, liquid staking, and leverage strategies.

To reduce risk, Doppler Finance is building a risk-isolated lending market that allows different asset pools to operate independently. In addition, the platform employs a multi-layer risk control mechanism, including the use of top custodial service providers in the industry and a multi-strategy, multi-team collaboration model to ensure asset security.

The Prospects and Challenges of XRPFi

The emergence of XRPFi has filled the gap of "high market value, low chain use" for XRP for a long time. Through technological innovation, XRP has entered the Decentralized Finance ecosystem, providing holders with more avenues for value realization. However, the current XRPFi ecosystem is still in its early stages, and the overall user scale, liquidity depth, and protocol maturity remain to be verified.

With the development of the Ethereum Decentralized Finance ecosystem, the market is turning its attention to high market capitalization assets that have not yet been fully activated. The development of XRPFi responds to the demand for activating XRP and the Ripple ecosystem, but its long-term prospects still need time to be tested. In the future, whether XRPFi can truly activate the potential of XRP and become a new force in the DeFi field is worth continuous attention.