Firelight Protocol Launches XRP Staking for DeFi Yield

The Firelight Protocol’s rollout is structured in two distinct phases, each designed to progressively unlock value for XRP holders. The initial phase, which is now live, allows users to deposit their XRP into protocol vaults. In return, they receive stXRP, a fully-backed ERC-20 token that maintains a 1:1 peg with the deposited XRP. This liquid staking token is transferable and serves as a key to the Flare DeFi ecosystem. Flare is an interoperability blockchain that enables smart contracts to access external data, and on its network, stXRP can be utilized for swapping on decentralized exchanges, provided as collateral in lending pools, or contributed to liquidity pools, thereby generating yield.

Early participants depositing XRP also qualify to earn Firelight Points, an incentive mechanism. The protocol’s official site reported that its vault attracted more than $4.2 billion worth of tokens in the first few hours post-launch, indicating substantial initial demand from the XRP holder community. This phase effectively transforms static XRP holdings into a productive, liquid asset within a growing DeFi landscape.

The second phase of Firelight’s launch represents its foundational purpose: allocating the capital from staked XRP to back a DeFi cover mechanism. According to the Firelight team’s statement, this system is designed to provide on-chain insurance, or ‘cover,’ that can be contracted by other DeFi protocols to safeguard asset value in the event of hacks and exploits. This creates a sustainable economic model where the staked XRP provides a critical security service to the broader ecosystem.

‘Firelight aims to add a new layer of value for XRP by providing a staking layer that utilizes the staked XRP for providing on-chain cover,’ the team stated. This mechanism ensures the protocol sustains real demand, which in turn generates the rewards distributed back to stakers. By tying the yield for XRP holders directly to the provision of security for DeFi assets, Firelight Protocol creates a novel utility case that extends beyond simple staking for inflation rewards.

Recognizing the critical importance of security in DeFi, Firelight Protocol has adopted a rigorous, security-first approach from its inception. The protocol is backed by a consortium of established entities in the blockchain space. It is supported by the blockchain solutions platform Sentora (formerly IntoTheBlock), which acts as the technical service provider, and Flare, which provides the essential bridge connecting XRP to the DeFi ecosystem. Both Sentora and Flare are backed by Ripple, sharing a commitment to expanding DeFi capabilities for XRP.

To ensure maximum compliance and robustness, Firelight has undergone three independent security audits. The chain was scrutinized by leading security firms OpenZeppelin and Coinspect, and further tested through a bug bounty program supported by Immunifi. ‘Their combined expertise in secure interoperability, protocol design, and network operations provides Firelight with deep technical support and a clear path for long-term ecosystem growth—so XRP holders and developers can build, secure, and scale real-world applications with confidence,’ the Firelight team added. This multi-layered security foundation is crucial for gaining user trust, especially for a protocol designed to protect other DeFi assets.