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The Flare CEO, Hugo Philion, has recently called attention to what he believes could represent a passive income opportunity for XRP holders.
Philion suggested that XRP holders could earn this passive income by using XRP across the Flare ecosystem. He explained that giving XRP the ability to generate returns could push more people to hold and use it, similar to the way Bitcoin holders take advantage of yield options.
Philion also highlighted the platforms that enable these earnings, including Firelight and DEX liquidity programs, describing how users can stack strategies to boost returns.
Key Points
- While the XRP Ledger does not feature a native staking feature, Hugo Philion believes Flare could help bridge this gap.
- Philion noted that with Flare’s Firelight project, XRP holders could earn passive income through staking yields.
- He pointed out an estimated yield range of 4-8% for users who deposit FXRP.
- Philion also suggested that DEX pools on Flare may pay around 10-15%, allowing users to earn close to 9%.
- According to him, users could also borrow FXRP or dollars against staked XRP to reinvest and multiply potential gains.
Turning XRP Into a Yield-Generating Asset
The Flare CEO revealed this while speaking in an interview with The Bearable Bull. According to him, people value an asset more when it can do more than just sit in a wallet. This is why he believes letting XRP earn returns will increase interest in the token and support long-term price growth.
He noted that Bitcoin already offers many yield options across the industry, while XRP still lags behind. Flare seeks to bring XRP up to the same level and make it just as useful for earning.
Philion said most investors want their assets to work for them. Once more users begin putting XRP into earning strategies, he expects demand to grow even more. He believes that if billions of XRP start moving through these systems every day, the token will grow from a simple payment asset to a real financial tool.
How Flare Enables Earnings
Philion explained that Firelight, a DeFi insurance and cover protocol, is central to this idea. XRP does not generate yield on its own, so Firelight takes deposited XRP and places it into external strategies. Those strategies then return profits to users.
He said that Firelight currently targets returns between 4-8%, depending on market conditions. According to Philion, this represents the first major step in creating income opportunities for XRP.
He also mentioned platforms like Sparkex and Anosex, which offer strong returns because Flare provides heavy support for liquidity on decentralized exchanges. These incentives ensure the network always has enough liquidity for trading and lending, even when prices move quickly.
Staking Strategies With FXRP
Philion discussed how users can use staking strategies to increase earnings. In the process, a user could convert XRP to FXRP and deposit it into Firelight. Firelight would then give them a staked XRP token that works as proof of ownership. This token would open the door to more options.
Specifically, Philion highlighted two common methods users can follow. In the first method, someone borrows FXRP against their staked token on a lending platform. If the borrowing cost stays lower than Firelight’s yield, they can repeat the cycle and collect the difference as profit.
In the second method, a user borrows dollars worth about half the value of their XRP stake and then deposits those dollars into a liquidity pool. Philion said some pools pay around 10-15%. Combining that with Firelight’s earnings could lead to impressive returns.
Risks Involved
However, Philion reminded listeners that staking increases risk each time another layer is added. Notably, higher returns often come with more exposure, so users need to understand what they are doing.
He stressed that there was a difference between normal financial risk, where tokens rise and fall with the market, and technology or design failures. He said that Flare works hard to remove technical risks so users only deal with real market movement, not poor infrastructure.
Flare Building an XRP-Based DeFi Ecosystem
Philion said Flare focuses fully on turning XRP into a DeFi powerhouse. According to him, users have already minted about 88 million FXRP, all from retail holders. He expects the number to jump once large institutional players enter the space.
He also revealed that Flare set aside 20% of its token supply, worth about $400 million, to support incentives and build liquidity. These funds help attract builders, strengthen DeFi activity, and reward users who participate early. Philion believes these programs will drive long-term growth and unlock many new opportunities for XRP holders.