XRP holders just got a new DeFi trick: using their tokens as collateral for options trading, all without ever sending them to a centralized exchange. Flare Network’s FXRP, a trustless wrapped version of XRP, is now accepted as collateral on Derive, the decentralized derivatives platform formerly known as Lyra.
The setup works through Flare’s FAssets protocol, which mints FXRP as a 1:1 over-collateralized representation of XRP. The underlying XRP stays parked on the XRP Ledger while the synthetic version moves freely across EVM-compatible chains.
How the plumbing works
Flare’s FAssets system creates FXRP by locking XRP on the XRPL and minting an equivalent token on Flare’s network. The “over-collateralized” part means there’s more value backing each FXRP than the token itself is worth, providing a buffer against price swings.
Once minted, FXRP can be used across decentralized protocols just like any other ERC-20 token. On Derive, that means posting it as margin for options contracts and perpetual positions. The platform offers what it describes as institutional-grade trading features, including structured products that go beyond simple spot swaps.
