On the topic of borrowing RLUSD against XRP, the system needs four things: XRP locked as collateral, an RLUSD debt linked to it, a reliable XRP/RLUSD price, and a liquidation process when the position becomes unsafe.
FXRP makes this possible by turning XRP into a programmable asset. XRP is minted into FXRP through FAssets on Flare, bridged to Ethereum, and deposited as collateral in the FXRP/RLUSD market on Morpho. RLUSD comes from Sentora’s curated vault, while Morpho tracks the debt and makes undercollateralized positions available for liquidation.
XLS-65 and XLS-66 introduce a different lending model on XRPL.
XLS-65 creates single-asset vaults that pool assets such as XRP or RLUSD. XLS-66 allows those vaults to fund fixed-term, uncollateralized loans approved by a loan broker.
XRPL currently does not bind a borrower’s XRP to an RLUSD debt with automatic collateral valuation and liquidation. FXRP gives XRP access to those capabilities through programmable lending markets that already support them.