## Introduction
Flare has made a significant development in the decentralized finance (DeFi) space by launching FAssets on its mainnet, kickstarting with FXRP v1.2. This new integration allows XRP holders to leverage their tokens within various DeFi applications. Let’s delve deeper into how FXRP works and the incentives accompanying its launch.
## How FXRP Works
FAssets by Flare serve as the bridge for conventional non-smart contract cryptocurrencies like XRP to be transformed into tokens compatible with DeFi platforms. Each FAsset mirrors the original asset at a one-to-one ratio, supported by a secure system of independent agents and Flare’s established data protocols. Once converted, FXRP seamlessly integrates into the Flare ecosystem, eliminating the need for additional configurations.
## Acquiring FXRP
Users can mint FXRP by obtaining XRP on the XRP Ledger, transferring it to a self-custody wallet compatible with Flare and XRPL, and utilizing minting tools like AU or Oracle Daemon. Initially, a cap of 5 million FXRP will be in place, with gradual increments over time. Alternatively, FXRP can be acquired through decentralized exchanges such as SparkDEX, BlazeSwap, and Enosys, or via wallets like Luminite and Oxen Flow that enable built-in swaps and bridging functionalities.
## Incentives at Launch
As an incentive for embracing FXRP, Flare will distribute rewards in the form of rFLR to liquidity pools contributing to total value locked and on-chain activity. This includes the Kinetic FXRP Supply pool featuring a target APR of 5% and the Kinetic FXRP/USDT₮0 isolated pool designed to mitigate risks with USDT₮0 as the primary borrowing asset against FXRP. Additionally, liquidity pools for FXRP/USDT₮0 on platforms like SparkDEX, BlazeSwap, and Enosys will offer a targeted APR of 50%.
## Conclusion
The introduction of FXRP by Flare into the DeFi ecosystem represents a pivotal moment for XRP holders, enabling them to explore new opportunities in the DeFi landscape. The system’s security, undergoance of multiple audits, and the distribution of lucrative incentives set a strong foundation for the widespread adoption and growth of FXRP. Stay tuned for further integrations and enhancements within the Flare ecosystem that aim to expand the utility and usability of FXRP.