Flare can add XRP to the DeFi environment developed on Ethereum by linking up with Ripple. Airdropped indigenous Flare tokens, dubbed Spark, would be XRP token owners to trigger operation.
Capital expenditure by Ripple Eventually Pays Off
Ripple CTO David Schwartz stated Flare Networks will eventually add DeFi to the XRP Ledger in a session organised by digital currency forum Uphold. He mentioned audiences that in November 2019, Xpring, the implantation branch of Ripple, had spent in Flare.
The expenditure now seems to be paying off.
Flare is an Ethereum Virtual Machine powered with smart contract network (EVM). It would build a connection between the XRP ledger and Ethereum, turning what has been a less than groundbreaking project as of late into a much-needed upgrade.
The plan itself has done nothing in the way of growth considering XRP’s volatile price behavior. Currently, Schwartz noted the network will be able to support DeFi programs. He believes that the smart contracts allowed by Flare will contribute to the usefulness of XRP.
The CTO stated that, “It is fantastic to see companies building systems that add utility to XRP and I think the ability to use XRP directly in smart contracts is going to be tremendously useful,” XRP owners will be able to create XRP-pegged tokens named FXRP and then use them within Eths DeFi programs until the Flare version is live. Spark tokens will be required as collateral to produce FXRP.
To trigger operations, Flare will unload Spark tokens to all XRP owners. The group captured a snapshot of all qualifying addresses at 12:35 am UTC on Dec. 12.