Big Win for XRP Holders: On-Chain Options Arrive via Flare’s FXRP

Layer-1 chain Flare has announced that FXRP now works as collateral on Derive, letting XRP holders trade on-chain options and perpetual futures from their own wallets.

According to a press release shared with CryptoPotato, holders can mint FXRP through Flare’s FAssets system, deposit it on Derive, and run positions from a single Portfolio Margin V2 account, which covers hedging, premium generation, and directional trades on the same collateral.

Flare said XRP holders previously had limited ways to hedge a position or generate options premium without relying on centralized exchanges or custodians.

Options Cash Settle in USDC

Derive’s XRP options are cash-settled in USDC. When a contract expires in the money, the difference is paid out in USDC, and the FXRP stays posted as collateral, so settlement moves no underlying XRP. Sellers need enough USDC on hand to cover that payout, and they carry margin and liquidation risk on the position.

Derive is built on infrastructure from Lyra Finance and runs options, perpetual futures, and spot trading through one portfolio margin system. It traded more 30-day notional options volume than any other on-chain venue tracked by DefiLlama, which puts its total value locked near $118 million.

… Continue reading the full article at the original source below.