shXRP: liquid staking for XRP, built on ERC-4626

The core of Shield Finance is ShXRPVault — an ERC-4626 compliant tokenized vault for liquid staking of XRP on Flare Network. Here’s how it’s designed to work.

The basic loop

1. Deposit FXRP (FAssets-wrapped XRP — see our FXRP explainer)
2. Receive shXRP — liquid shares representing your proportional ownership of the vault’s assets and yield
3. Yield accrues automatically — the vault deploys capital into yield strategies; your shares appreciate against the underlying
4. Withdraw whenever — shXRP redeems back to FXRP at the current share price

Because shXRP is a standard, transferable token, your staked position stays liquid — you’re never locked in to earn.

Design choices worth knowing

• ERC-4626 compliance — the vault speaks the industry-standard tokenized-vault interface, which means predictable accounting and easy composability with other DeFi protocols
• 10% instant-withdrawal buffer — a portion of vault assets is kept liquid so typical redemptions are immediate, without waiting on strategy unwinding
• SHIELD boost — $SHIELD stakers get enhanced APY, funded by the 40% StakingBoost share of protocol revenue (how the flywheel works)
• Defense in depth — reentrancy guards and access controls throughout, per the security checklist in the docs

Where it stands

The vault is currently deployed on Coston2 testnet and the specification is in its security-hardening phase ahead of audit and mainnet deployment. If you want to try the flow with test funds, grab testnet FXRP from the faucet and dive in.

The full specification — architecture, contract hierarchy, and security model — lives in the docs.