Borrowing RippleUSD without selling XRP…Flare's loan limit expanded to $9 million

▲ Ripple (XRP) ©Go Dasol

The Flare lending market, which allows borrowing of the stablecoin RippleUSD (RLUSD) collateralized by XRP (Ripple), exhausted its initial liquidity of $1 million within hours of its launch. With immediate borrowing demand confirmed, the RLUSD supply limit is expected to be expanded from $5 million to approximately $9 million.

According to cryptocurrency media outlet Finbold on August 7 (local time), Layer 1 blockchain Flare announced that 1 million RLUSD was borrowed using FXRP as collateral in the FXRP·RLUSD lending market opened on Morpho, within hours of its launch. The entire 1 million RLUSD initially supplied by Flare as liquidity has been lent out, and a risk assessment to increase the supply limit to approximately 9 million RLUSD has already been approved.

The launch of this lending market follows FXRP's approval as the first XRP-based collateral asset in Sentora's $280 million institutional managed RLUSD vault on the Ethereum (ETH) mainnet. Approximately 150 million FXRP are currently in circulation, with about 34.5 million of them being used as collateral on Mystic Finance, a Flare-based Morpho protocol.

The newly launched market is Sentora's institutional managed market operating on Ethereum, separate from Mystic Finance on Flare. On Flare, the FTSOv2 oracle provides FXRP prices, while on the Ethereum market, Sentora's ChainlinkOracleV2 is used for price determination. The media assessed that the rapid increase in borrowing immediately after launch demonstrates the demand from XRP holders to acquire stablecoin liquidity without selling their assets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*