Disclaimer: Kinetic Market stopped incentivizing stXRP deposits for the time being. You can deposit FXRP as collateral as instructed in the tutorial, but not stXRP. For details: https://x.com/Kinetic_Markets/status/2001754063717712017
Kinetic Market and Bifrost Wallet make it easy to earn onchain yield with XRPFi assets like FXRP and stXRP. This guide walks you through connecting via WalletConnect, supplying collateral, borrowing USDT0, repaying, and withdrawing, plus the key risk metrics such as Health Factor and Collateral Factor to monitor.
DeFi involves risk. Borrowing can lead to liquidation if your position becomes unsafe. Only use amounts you’re comfortable managing.
Before you start
Make sure you have:
Bifrost Wallet installed and set up
A small amount of FLR for transaction fees (gas)
FXRP and/or stXRP in your wallet (and optionally USDT0)
Step 1: Open Kinetic Market and connect Bifrost Wallet
Open Bifrost Wallet and tap the “Browser” icon.
In your browser, go to kinetic.market.
Tap “Launch on Flare”.
Open Bifrost Wallet and tap the “Browser” icon.
In your browser, go to kinetic.market.
Tap “Launch on Flare”.
Bifrost Wallet is also WalletConnect Certified, which focuses on secure, reliable wallet-to-dapp connections.
Step 2: Supply FXRP (or stXRP) to earn yield
In Kinetic, tap “Dashboard” in the lower left.
Select “Supply & Borrow” from the options.
Choose FXRP-USDT0-stXRP.
Choose what you want to supply (FXRP, stXRP, or USDT0). For this example, select FXRP.
Enter the amount, then click “Approve & Supply”.
In Bifrost Wallet confirm the approval transaction and wait for confirmation.
That’s it, you’re now supplying FXRP, and your position can start earning yield based on market conditions.
Step 3: Borrow USDT0 against your supplied collateral
Before you click Borrow:
Keep extra FLR for gas.
Don’t borrow at the maximum. Leave HF headroom.
Re-check HF after big price moves.
Treat “Max” buttons carefully (especially on Borrow).
If something looks off, stop and verify the domain + transaction details.
Next, you’ll borrow USDT0 using your supplied FXRP as collateral.
Switch from “Supply” to “ Borrow”.
Choose USDT0 from the borrow dropdown.
Enter the amount you want to borrow and tap “Borrow”.
Confirm the borrow transaction and wait for confirmation.
Close the transaction modal.
Step 4: Review your position in the Dashboard
Go to Dashboard to see your overview: supplied assets, borrowed assets, rates, and your risk metrics. This is the screen you’ll come back to any time you want to adjust risk, repay, or withdraw.
Step 5: Repay your borrow
In Dashboard, find your borrowed USDT0 position and tap “Repay”.
Enter the amount that you wish to reply, then tap “Approve”.
Confirm the approval transaction and wait for confirmation
Close the transaction modal.
Step 6: Withdraw your supplied FXRP
Once your borrow is repaid (or low enough), you can withdraw your collateral:
On the dashboard page, tap “Withdraw” on your supplied FXRP position.
Enter the amount that you wish to withdraw and tap “Withdraw”.
Confirm the transaction and wait for confirmation.
Close the transaction modal.
And you’re done.
Checklist for Supplying & Borrowing
Before you click Borrow, do this:
Keep extra FLR for gas.
Don’t borrow at the maximum. Leave HF headroom.
Re-check HF after big price moves.
Treat “Max” buttons carefully (especially on borrow).
If something looks off, stop and verify the domain + transaction details in-wallet.
FAQ
How does Supply & Borrow work?
You deposit assets (e.g., FXRP or stXRP) into Kinetic to earn yield. Those deposits can be enabled as collateral so you can borrow another asset (e.g., USDT0) against a portion of their value. Rates are market-driven by supply and demand. You can repay and withdraw when your position allows.
What is Health Factor?
Health Factor (HF) measures the safety of your position compared to your debt. If HF falls to 1, the position becomes eligible for liquidation on Kinetic. Raise HF by repaying debt or adding collateral.
What are Borrow APY, Distribution APY, and Net APY?
Borrow APY: the annualized rate you pay on the amount borrowed
Distribution APY: incentive rewards credited to your position (if active)
Net APY: your all-in result after combining supply yield + incentives minus borrowing costs
What is Collateral Factor?
It’s the percentage of an asset’s value that counts toward borrowing power. Each asset has its own factor set by the protocol.
What triggers liquidation?
On Kinetic, liquidation can occur when the Health Factor reaches 1 (or below). Keep a buffer above 1 to reduce risk.
How do I keep my position safe?
Monitor Health Factor regularly, avoid borrowing to the maximum, and maintain headroom for price moves. If HF trends down, add collateral or repay.
Why don’t my APYs stay constant?
Kinetic Market’s rates adjust dynamically based on utilization (how much is borrowed vs. supplied), so APYs can change over time.
About Bifrost Wallet
Bifrost Wallet is a secure, private, non-custodial crypto wallet. It works as your digital keychain for blockchains and assets such as Flare (FLR), Songbird (SGB), Ethereum (ETH), XRP Ledger (XRP), and Bitcoin (BTC).
Click here to subscribe to Bifrost Wallet Youtube channel to discover more in-depth, step-by-step tutorials. Stay safe, stay with Bifrost Wallet.