Firelight has officially launched on Flare, introducing the first staking layer for XRP. This launch brings a new primitive for XRP holders and adds another foundational layer to Flare’s expanding DeFi stack.
Opportunities Created by Firelight for XRP
XRP, despite being one of the largest crypto assets by market capitalization, has historically lacked native staking or yield opportunities. The Firelight staking mechanism is designed to address this by enabling XRP holders to stake their assets in a decentralized manner. This process allows them to maintain liquidity through a liquid staking token (LST) known as stXRP. Because Firelight is built on Flare, stXRP becomes immediately composable with the rest of the Flare ecosystem. This composability means stXRP can be:
- •Traded across Decentralized Exchanges (DEXs).
- •Integrated into lending markets as collateral.
- •Deployed in structured vault strategies.
- •Held as a composable asset for future products.
This staked FXRP forms the foundation of Firelight’s DeFi cover mechanism. This mechanism provides protection for protocols against potential risks such as smart-contract exploits, economic risks, oracle risks, or bridge risks. With over $1 billion lost annually due to DeFi hacks, the demand for this type of protection creates additional, tangible utility and yield potential for stakers.
Building on Existing XRPFi Infrastructure
Firelight integrates directly with the XRPFi stack by utilizing FXRP as its staking asset. It also relies on the same infrastructure that already supports trading, lending, and liquidity on Flare. Since FXRP already functions as the shared collateral rail across ecosystem protocols, stXRP becomes immediately usable within many of these same markets.
By introducing staking, Firelight enhances the productivity of FXRP and expands the range of collateral available to developers building on Flare. stXRP can support new products, collateral types, and more capital-efficient liquidity across DeFi. This, in turn, strengthens the overall XRPFi stack by connecting staking, liquidity, and cover markets into a more cohesive system.
How Firelight Operates
Firelight's launch is structured in two distinct phases. The initial phase focuses on liquid staking, with a subsequent expansion into DeFi cover. Both phases utilize FXRP as the core asset, facilitated through fully on-chain flows.
Phase 1: Liquid Staking (stXRP)
In the first phase, users deposit XRP, mint FXRP through the FAssets system, and then stake it to receive stXRP. stXRP is an ERC-20 token that represents their staked position. This stXRP can be held or utilized across Flare DeFi protocols while continuing to accrue staking rewards through Firelight. Early participants in this phase are also eligible to earn Firelight Points, a program designed to reward initial usage and activity on the protocol.
Phase 2: DeFi Cover
The second phase of Firelight's launch will activate its DeFi cover mechanism. In this phase, stXRP will be allocated to back protocols that are seeking protection against smart-contract exploits. This alignment of staking rewards with real, on-chain demand for risk protection creates a sustainable model for long-term utility. All liquidity deposited into Firelight ultimately contributes to this cover pool.
Firelight Security Measures
Firelight is launching with a robust security foundation, encompassing several key elements:
- •Independent audits have been conducted by firms such as OpenZeppelin and Coinspect, complemented by a live Immunefi bug bounty program.
- •The FAssets system is fully collateralized, decentralized, and has undergone audits.
- •Transparent mint and burn pathways for FXRP are in place, alongside clear proof-of-reserves and live collateral monitoring.
This security-first approach ensures that Firelight can safely support staking operations today and the DeFi cover functionality in Phase 2.
The Evolving Landscape of XRPFi
Firelight represents a significant advancement in expanding the tools, liquidity, and risk infrastructure available to XRPFi users on the Flare network. As Firelight further deepens the utility of Flare’s collateral layer, staked FXRP is poised to become an increasingly important component of the DeFi ecosystem.
For existing FXRP holders, the opportunity to begin staking is available by visiting Firelight.
New users can follow a video guide to learn how to mint FXRP and get started with Firelight.