The decentralized finance (DeFi) platform Flare has introduced a new XRP yield product in partnership with digital asset manager Monarq and vault infrastructure provider Upshift.
According to a press release, the product—called the Monarq XRP Yield Vault (MXRPY)—is a multi-strategy XRP vault designed to give XRP holders diversified yield opportunities. MXRPY is built on Upshift’s vault infrastructure and operated by Monarq, and it is available to users on the Flare network.
MXRPY Offers Diversified Yield
MXRPY deploys capital across three complementary strategies: options trading, basis and funding-rate arbitrage, and on-chain XRPFi deployments. When users deposit Flare XRP (FXRP) into the vault, they receive MXRPY tokens that represent their deposited capital and any accrued yield. Returns are generated through the vault’s three primary engines.
The first engine uses XRP as collateral to support options strategies executed across multiple platforms and over-the-counter markets. The second engine targets funding-rate and market-neutral basis opportunities by deploying borrowed stablecoins on major platforms. The third engine allocates capital to Flare-native XRP Finance (XRPFi) opportunities and other DeFi applications on the network.
At launch, the vault has an initial deposit cap of 500,000 FXRP and targets an annual percentage yield (APY) in the range of roughly 3% to 4%, with distributions occurring over time according to strategy performance and market conditions. MXRPY is accessible through Upshift’s interface; standard withdrawals are processed weekly on Fridays, and an optional fee-based instant redemption mechanism is available for users who need immediate liquidity.
Monarq’s managing partner, Shiliang Tang, emphasized the product’s role in expanding financial options for the ecosystem: “A real financial system needs a broader menu of options. MXRPY is built to be one of those options for XRP holders.”
MXRPY App Coming Up
The launch of MXRPY broadens the scope of XRPFi activity on Flare and adds to the growing roster of yield-bearing products available to XRP holders. In recent months, Flare has rolled out multiple yield and lending products for the community. This latest vault combines on-chain and off-chain execution to provide a diversified set of yield sources for deposited FXRP.
“The Clearstar EarnXRP vault showed that there is real demand for XRP-denominated vaults on Flare. Upshift provided the infrastructure behind that launch, and we’re now expanding the model with Monarq, a second XRP vault with a different strategy profile and a broader set of yield sources,” said Upshift’s growth lead, Ethan Luc.
As MXRPY gains adoption among XRP holders, the teams behind the vault plan to release a standalone application. The forthcoming app is expected to enable direct access to MXRPY through XRP Ledger wallets, simplifying deposits and withdrawals for users who prefer a native wallet experience.