Enosys has launched Enosys Loans, a Collateralized Debt Position protocol on the Flare blockchain. The system allows XRP holders to mint a trustless, overcollateralized stablecoin without selling their assets. At launch, FXRP and wFLR are accepted as collateral, with plans to add stXRP in the near future.
The protocol uses the CDP model, where users lock assets as collateral to generate stablecoins valued near $1. A stability pool manages liquidation events and covers outstanding debt, while participants earn rewards from minting fees, interest, and liquidation proceeds.
Collateral Pricing via FTSO
Collateral pricing is provided by the Flare Time Series Oracle (FTSO), which aggregates data from independent sources to avoid reliance on centralized feeds.
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Enosys Loans is described as a fork of Liquity V2, a protocol that has operated since 2021 and introduced features such as user-defined borrowing rates and improved capital efficiency.
Borrowing on Flare
On Flare, users can mint stablecoins by locking FXRP, a representation of XRP. Borrowers may choose their borrowing rate, though lower rates carry a higher risk of redemption if the stablecoin’s value slips below its peg. Support for stXRP, issued by Firelight, will enable users to combine staking returns with stablecoin minting.
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The launch marks the first XRP-backed stablecoin on Flare and expands the use of stXRP within decentralized finance. Incentives in the form of rFLR will be distributed to users in stability and liquidity pools to encourage adoption.
GENIUS Act Establishes U.S. Stablecoin Regulatory Framework
President Donald Trump recently signed the GENIUS Act into law, establishing the first U.S. framework for regulating stablecoins. The legislation defines and oversees stablecoin issuers, shifting implementation to federal financial regulators.
While enforcement details are pending, the law sets a foundation for broader crypto regulation. The signing was attended by senior Republicans and crypto executives, including leaders from Kraken, Gemini, Coinbase, Circle, and Tether. Analysts expect the rules to guide stablecoin oversight and influence future U.S. crypto policy development.