Firelight launches XRP staking protocol on Flare, with stXRP planned to earn rewards through DeFi insurance
Firelight launched an XRP staking protocol on Flare, issuing stXRP which will earn rewards via a DeFi insurance fee model in Phase 2.Summary
Firelight Finance has launched Phase 1 of its XRP staking protocol on the Flare network, introducing a liquid token called stXRP. Users bridge XRP to Flare, wrap it as FXRP, deposit it into Firelight, and receive stXRP 1:1. While stXRP is currently usable across the Flare ecosystem, staking rewards are slated to begin in Phase 2 (expected early 2026), contingent upon DeFi protocols adopting Firelight's DeFi cover and insurance model and paying associated fees.
Firelight's design adapts the concept of restaking by focusing on assets with a lower cost of capital, like XRP, to bootstrap security for a single use case: DeFi cover for top-tier protocols. Connor Sullivan, Firelight's CSO, noted that this model aims to provide XRP holders with staking rewards while offering DeFi protocols essential insurance against hacks and failures.
Firelight is incubated by Sentora (formed from the merger of IntoTheBlock and Trident Digital) and the Flare network, both backed by Ripple to enhance XRP's role in DeFi. If protocols purchase cover, the fees paid will fund the staker rewards. The system is designed to be chain-agnostic, allowing any protocol on any chain to purchase protection.
(Source：The Block)