On November 1, Kinetic’s FXRP market on Flare had roughly $24 million supplied and $2 million borrowed, with a base lender annual rate of about 0.04% before rewards. The displayed return reached 0.59%, including 0.55% in rFLR rewards, showing that incentives far exceeded the interest paid by borrowers. FXRP utilization stood at 6.7%, compared with 92.8% for USDT0, but attributing the stablecoin debt to FXRP collateral would require individual account data. FXRP suppliers can nevertheless use the asset as collateral to borrow other assets while remaining overcollateralized, giving them access to credit separate from their interest income. That benefit may justify maintaining a collateral position even when the base rate offered to lenders remains low.
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