I've just seen it run fully and it's truly remarkable. XRPL-controlled loans powered by Flare Smart Accounts, with all the complexity abstracted away, are in the final phase. It's an incredible engineering solution that involves XRPL-signed intent, Flare orchestration, LayerZero transport and execution on Ethereum. This can enable a new XRP credit market to take shape across EVM liquidity without XRPL users having to understand all of the infrastructure underneath while still retaining control through their XRPL wallet. The lending position is executed on Morpho on Ethereum, but controlled from an XRPL wallet. The way it works is like this: An XRPL account makes a payment to the FAssets Core Vault together with a Custom Instruction. FDC verifies that payment on Flare, FXRP gets minted into the system, and the user's Smart Account executes the instructions that were committed to from XRPL. Part of that execution uses a Loan Subaccount, essentially a dedicated account for managing the loan position and its collateral. From there, the FXRP on Flare crosses through the OFT and LayerZero path together with the borrow instruction to the corresponding remote Loan Subaccount on Ethereum. Finally, that remote account supplies the FXRP into Morpho, borrows RLUSD, and sends it to the destination the user authorized. Sounds like a lot, because it is, and it's all abstracted away such that an XRPL user can just connect their wallet to a portal, sign, and after a couple of clicks receive RLUSD as a loan against their XRP. Extremely powerful technology, and the loan flow is only one implementation of this type of primitive.

This is great news. Upshift curators can now use the same pool of staked FXRP on Flare to back protection for their own vaults. A clear path to show how XRP starts becoming shared risk capital for DeFi products across the entire market.

I think there’s a massive opportunity for builders to create consumer products on Flare. Most of the interoperability stack is now live, and you can build onchain experiences that are much harder to put together elsewhere. And the surface area should only grow from here.

I think this weekend’s Permission Delegation debate raised a bigger question around how XRPL decides when new functionality is ready to move forward. @Vet_X0 was up for unpacking it properly, so tomorrow we’re hosting an XRPL Permission Delegation Roundtable. Feel free to join us, bring your questions, and help get the discussion in front of more of the community.