Flare and Derive Unleash Options Trading for XRP Holders
XRP holders can now trade options using Flare's FXRP as collateral, thanks to an integration between Flare Network and Derive, a decentralized derivatives exchange. This move allows XRP holders to trade on-chain options and perpetual futures directly from self-custody wallets without having to sell their XRP.
Users first bridge native XRP onto the Flare Network through Flare's non-custodial FAssets bridge, which mints FXRP, a token that mirrors XRP's value on a 1:1 basis. Holders then deposit the minted FXRP into a Derive Portfolio Margin V2 account, unlocking cross-margined trading products for the user.
XRP options on Derive settle in USDC instead of XRP, and traders keep their FXRP posted as collateral while their profits and losses settle in stablecoin value. This integration opens several paths for XRP holders, including writing covered calls or cash-secured puts against their FXRP to earn premiums.
Traders seeking direct market exposure can also use perpetual futures, which let them take long or short positions with custom leverage. The integration follows FXRP's recent adoption across institutional lending protocols and marks a shift in how XRP functions within decentralized finance.