Monarq XRP Yield Vault (MXRPY) launches on Flare
The Monarq XRP Yield Vault (MXRPY) puts FXRP to work across options, basis and funding-rate trades and Flare-native DeFi, with Monarq Asset Management running the strategy and Upshift providing the vault.
The Monarq XRP Yield Vault is live on Flare, launched by Monarq Asset Management, Flare and Upshift. Holders deposit FXRP, the representation of XRP on Flare, and receive MXRPY, a receipt token for their share of a vault that allocates across three return sources at once. Monarq, a digital asset manager backed by FalconX, decides the allocation and executes the offchain trades, Flare provides the FXRP infrastructure and distribution, and Upshift provides the vault contract and deposit rails.
Deposit FXRP into the Monarq XRP Yield Vault: app.upshift.finance/pools/14/0x2439D4bb753A0f3777d4C9011AFacc475ba6B951
Two XRP vaults on Flare
XRP holders on Flare already have earnXRP, the Clearstar vault on Upshift that spreads FXRP across onchain lending and liquidity markets. That vault covers the DeFi half of XRP yield. The strategies institutional desks run on the other side of the market (options, basis trades and funding-rate capture) have mostly sat inside funds and OTC relationships that an individual XRP holder can't reach.
MXRPY brings that second set of strategies into the same self-custodied vault format, with an onchain sleeve on Flare as a complement. A holder who wants fully onchain exposure can stay in earnXRP, and one who wants a managed book across CeFi and DeFi venues can hold MXRPY, or split between the two.
“The Clearstar EarnXRP vault showed that there is real demand for XRP-denominated vaults on Flare. Upshift provided the infrastructure behind that launch, and we're now expanding the model with Monarq, a second XRP vault with a different strategy profile and a broader set of yield sources.”
How the vault works
MXRPY allocates FXRP across three sleeves, and Monarq decides how much sits in each.
- Options strategies. XRP is posted as collateral through FalconX infrastructure to borrow BTC, which is deployed into options strategies on venues such as Deribit and in OTC structured products.
- Basis and funding strategies. XRP collateral is used to borrow stablecoins for market-neutral basis and funding-rate trades across major crypto markets.
- Onchain XRPFi. A portion stays on Flare in native DeFi venues, including lending markets and liquidity strategies built on FXRP.
The vault's returns are added back in FXRP, so each MXRPY represents the deposited FXRP plus any realized yield over time. When a holder withdraws, their MXRPY is burned and FXRP is returned to their wallet. Redemptions settle on a weekly cycle every Friday, and holders can pay a small fee to redeem instantly instead of waiting for the cycle.
Parameter | Detail |
Network | Flare (chain ID 14) |
Deposit asset | FXRP |
Receipt token | MXRPY |
Vault contract | 0x2439D4bb753A0f3777d4C9011AFacc475ba6B951 |
Strategy manager | Monarq Asset Management |
Initial deposit cap | 500,000 FXRP |
Redemptions | Weekly, every Friday, with an optional instant redemption for a fee |
The 500,000 FXRP cap lets the strategy scale in steps while Monarq, Flare and Upshift watch deployment, liquidity and early performance. To take part, a holder needs FXRP on Flare, either minted from XRP or bought through a swap. Our guide to FXRP covers how it's backed.
About Monarq Asset Management
Monarq is a digital asset manager backed by FalconX that already runs options and basis strategies as part of its core fund book. For MXRPY it takes the same role it plays for its fund, choosing the allocation across the three sleeves and executing the offchain trades directly.
“A real financial system needs a broader menu of options. MXRPY is built to be one of those options for XRP holders.”
Why the vault sits on Upshift
A strategy that runs partly on centralized venues is the case a vault wrapper is built for. Depositors hold MXRPY in their own wallets, the vault contract and its parameters sit onchain where anyone can inspect them, and August's policy engine limits what the operator can do with the capital at the chain, protocol, token and function level. Upshift has reached more than $550M in peak TVL across more than 30 chains, and its vault contracts have been through 10 smart contract audits by 6 independent firms.
Risks
The vault's displayed APR will move with strategy execution, market conditions and deployment timing, and no level of return is guaranteed. Offchain execution carries counterparty and venue risk, the onchain sleeve is exposed to smart contract and oracle risk, and FXRP depends on the bridge and agent collateral that back it. Spreading across three return sources lowers risk without removing it, and in a broad risk-off market sleeves that are normally uncorrelated can move together. Withdrawals outside the instant option wait for the Friday cycle, and Upshift's vault contracts don't carry smart contract insurance.
Always make sure to do your own research and be aware of the above and any other risks before depositing.
Keep reading
- How to earn yield on XRP with Flare vaults. Converting XRP to FXRP and how vault returns and withdrawals work.
- What is FXRP? How Flare's wrapped XRP is backed and redeemed.
- DeFi yield strategies. The strategy shapes vaults run, including basis and funding-rate trades.
Create a vault with Upshift
Share your use case and we’ll get back to you shortly