FAssets to Allow XRP Holders Earn dApp Yield or Bridge XRP Through LayerCake

Flare Labs has disclosed that FAssets could bring a new purpose for XRP by helping holders earn yield or bridge their tokens to other EVM networks through LayerCake.

Flare Labs, the research team behind the Flare Network, is currently developing the FAssets protocol. The central vision for the project is to introduce smart contract capabilities for assets that do not support smart contracts on their native networks, including XRP and Bitcoin (BTC).

The Crypto Basic reported on Dec. 1 that the development team had launched private beta testing for the project on the Coston testnet. The beta testing phase would emulate all real case scenarios for the project, allowing the testers to mint tokens such as XRP and BTC on Flare as FAssets.

These tokens, now FAssets, can then be leveraged for various purposes that are only possible with the use of smart contracts. Shortly after launching the beta testing phase, Flare Labs teased that the project could help unlock up to $800 billion in XRP and other crypto assets.

A New Purpose for XRP

Now, their latest teaser aims to highlight a few areas of interest for market participants, including yield generation and the ability to bridge their tokens to other EVM networks. It bears mentioning that Flare in itself is an EVM blockchain.

The #FAssets system will give your BTC, XRP & DOGE a new purpose.

Earn yield in dapps on #Flare or bridge to other ecosystems using #LayerCake, our insured-in-transit bridging and cross-network composability protocol.

⛓️ https://t.co/11su9sWLIQ pic.twitter.com/FPx5aWAuTp

— Flare Labs (@Flare_Labs) December 11, 2023

Flare boasts multiple dApps, with numerous projects currently building on the network. Last December, a curated list of all the projects on the blockchain was released, with their number totaling 42. In an impressive rise, these projects have increased to 280, marking a 566% surge in a year.

Some of these projects allow users to earn yield through staking and other DeFi activities. Now, market participants can leverage these protocols for yield generation when they mint their XRP and BTC tokens as FAssets on the Flare Network.

However, there is an alternative route for users who seek to use the dApps on other EVM blockchains such as Polygon, Ethereum, Avalanche, and Cosmos. According to Flare Labs, users can also bridge their FAssets from Flare Network to these blockchains. The list also includes Cardano, Solana, and Binance Smart Chain.

Users can bridge their FAssets by leveraging Flare’s upcoming LayerCake bridge protocol. Like the FAssets project, LayerCake is currently being developed. The development team stresses that the bridge protocol would solve the problems of centralization, security, and lack of liquidity plaguing mainstream bridges.