> For the complete documentation index, see [llms.txt](https://ember-7.gitbook.io/flaxwallet/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ember-7.gitbook.io/flaxwallet/readme.md).

# README

### Native XRP wallet with yield

{% hint style="info" %}
**Author:** Raehat Singh Nanda · <raehatsinghnanda@gmail.com>
{% endhint %}

## Abstract

XRPL is a non-smart-contract blockchain, so native staking mechanisms don't exist. Centralized exchanges do offer yield on XRP, but they require users to lock their assets — making them illiquid and introducing centralization risk.

**Flax** is a non-custodial wallet that lets users hold XRP with yield enabled. Users can spend their XRP in Flax exactly as they would in any other wallet — freely, to any XRP-enabled address, at native XRPL speed and fees — while the balance sitting in the wallet continues to earn yield in the background.

## Why Flax

<table><thead><tr><th width="220">Problem</th><th>How Flax addresses it</th></tr></thead><tbody><tr><td>No native yield on XRPL</td><td>XRPL has no smart contract layer, so staking and DeFi primitives don't exist natively.</td></tr><tr><td>Exchange yield requires custody</td><td>CEX yield products require locking assets with a custodian, introducing counterparty and centralization risk.</td></tr><tr><td>Locked assets are illiquid</td><td>Flax keeps a portion of the wallet's assets unutilized at all times so spending requests are honored on demand.</td></tr><tr><td>Users want to keep custody</td><td>Flax is non-custodial — the protocol can route funds into yield strategies but can never deny or redirect a user's spending request.</td></tr></tbody></table>

## How it works, in short

Flax uses [**FXRP**](/flaxwallet/whitepaper/fxrp.md), a 1:1 representation of XRP on the Flare Network, to unlock DeFi and staking strategies that don't exist on XRPL itself. A component called **FlaxManagerCC** — run inside [**Flare Confidential Compute (FCC)**](/flaxwallet/whitepaper/how-flax-uses-flare-cc.md), a Trusted Execution Environment — manages the split between funds actively earning yield and funds kept liquid for spending, continuously rebalancing between the two.

```mermaid
flowchart LR
    A["User holds XRP<br/>in Flax Wallet"] -->|enable yield| B["FlaxManagerCC<br/>(inside FCC)"]
    B --> C["FXRP on Flare"]
    C --> D["Unutilized lot<br/>~30% of TVL"]
    C --> E["Utilized lot<br/>~70% of TVL"]
    E -->|staking yield| C
    D -->|instant spend| F["Any XRPL address"]
```

## Read the whitepaper

Start with [1. Introduction](/flaxwallet/whitepaper/introduction.md), or jump straight to the [Architecture](/flaxwallet/whitepaper/architecture.md) section for the technical design.