Firelight Launches XRP Staking Protocol on Flare with Insurance-Backed Rewards

Firelight Finance has launched an XRP staking protocol on the Flare network, introducing the liquid token stXRP. This token can earn rewards through a DeFi insurance model that protects protocols against hacks and failures.

The launch represents Phase 1 of the rollout, allowing users to bridge XRP to Flare through FAssets, deposit FXRP into Firelight, and receive stXRP on a 1-to-1 basis. However, staking rewards are not active yet.

Chief Strategy Officer Connor Sullivan explained that the design borrows from restaking concepts but applies them differently. He stated that earlier attempts were hindered by high capital costs, and Firelight focuses on assets with lower capital costs.