Hyperliquid is currently offering XRP trading in the spot market through the Flare FXRP token. With the launch, the exchange becomes the first to allow trading of a spot XRP pair. It would also enable users to be exposed directly to XRP using the FXRP-USDC market.
How FXRP is Boosting the Growth of XRP DeFi
By moving FXRP across chains using the FAssets system of Flare and LayerZero standard OFT, it is possible to send money to chains and back to the XRP Ledger with a single click. According to the official statement, the implementation enables XRP owners access a fresh on-chain trading platform with custody being entirely on the blockchain.
Hyperliquid users also receive an easy point of access into the XRPFi ecosystem of Flare without entering through Flare.
This is another step that establishes XRP as an important part of decentralized finance. Also, the adoption of XRP DeFi (via FXRP) has increased throughout Flare-based liquidity markets.
The market runs on Hyperliquid on-chain order book. It is made to provide tighter spreads, deeper liquidity, and pro-quality trading instruments to active traders. Flare mentioned that FXRP exists as an integrated component in its DeFi ecosystem and uses Hyperliquid in its high throughput architecture.
The platform’s aim is to outperform the automated market maker in terms of price discovery and execution. This is particularly useful when there is high activity in the trade. It is designed for institutional-like trading so that more significant orders can be traded at reduced slippage.
Can FXRP Expand XRP Liquidity?
FXRP employs the multichain bridging flow whereby the asset is directed to Hyperliquid’s HyperEVM before being directed to HyperCore where it is traded. The growth in bridged XRP supports it. Hence, Flare Network bridges strengthen FXRP liquidity growth across related markets.
The new spot market also allows more trading strategies for XRP. Counterparties are able to hedge or directionally trade through the combination of FXRP spot position and perpetual contracts.
Flare observed that the high proportion of XRP transaction is in derivatives markets with no corresponding spot liquidity. However, the Hyperliquid listing assists in bridging such a gap. On the order book, users can add funds to their Hyperliquid account using USDC from Arbitrum and exchange it to FXRP.
How Is FXRP Growing the XRP Liquidity?
By using FXRP, users have an option to bridge XRP to Flare and transfer it to Hyperliquid for trading. When trading ends, they will be able to bridge FXRP to Flare or the XRP Ledger accordingly.
Holders are exposed to more DeFi opportunities within the Flare ecosystem. They can lend their token in the money market, stake with partners using protocols. Thus, making XRP to be a functioning yield-bearing asset with on-chain liquidity.
The growth of the network is an indication of the increasing FXRP minting activity. The rise in FXRP supply boosts liquidity in markets powered by Flare.
The new spot market will improve liquidity and make FXRP more readily available to users on both the Flare and Hyperliquid networks. Flare suggests the listing is the step toward the positioning XRP as a programmable and multichain financial asset.
Source: https://coingape.com/xrp-spot-trading-goes-live-on-hyperliquid-via-flares-fxrp/
