Firelight Ignites XRP Staking on Flare with stXRP Rewards
Ripple’s XRP token is gaining fresh momentum with Firelight Finance’s innovative staking protocol on the Flare network. The staking protocol platform has reportedly unveiled its XRP staking protocol on the Flare network, introducing a liquid token called stXRP.
This pioneering development brings a novel approach to staking, leveraging the power of DeFi insurance to generate rewards for users. With its focus on security, transparency, and user experience, Firelight’s protocol is poised to set a new standard for staking protocols.
Firelight Rewrites the Future of XRP Staking
Today, Firelight took to the X platform to unveil its strategic launch of the XRP staking protocol of the Flare network, a layer 1 blockchain solution. According to the official post, XRP staking goes live on Flare via Firelight’s new protocol, along with the launch of a liquid token called stXRP. This token is designed with the vision of generating rewards via DeFi insurance.
This development marks the first phase of the XRP staking protocol, allowing users to bridge XRP to Flare via FAassets and deposit FXRP to receive stXRP on a 1:1 basis. While stXRP is now usable across the Flare ecosystem, staking rewards will follow in Phase 2, stated for an early 2026 launch.
“Firelight keeps the key concept [of restaking], that you can reuse capital to bootstrap security, but changes how it’s applied,” stated Firelight’s chief strategy officer, Connor Sullivan. He added,
“We focus on assets with a structurally lower cost of capital, like XRP, instead of trying to outcompete ETH DeFi yields. We narrow in on a single, high-conviction use case: DeFi cover and insurance for top-tier protocols, where proper risk modeling actually matters. And we rethink incentives: short, transparent points programs tied to real participation and real economic value.”
Significantly, this development is a major milestone for the XRP token, which has been missing out on native staking and yield opportunities despite its massive market cap. By tackling this notable issue and the inadequate insurance in DeFi, Firelight is breaking a significant barrier for institutions.
stXRP: More Than Just a Liquid Token
Interestingly, stXRP is a liquid token that unlocks new opportunities in the Flare ecosystem. It enables user deposits across Flare’s DeFi ecosystem, including decentralized exchanges, lending protocols, and liquidity pools.
Early participants in the vault will receive Firelight Points, rewarding them for their participation ahead of Phase 2. Users can deploy FXRP into a launch vault and receive stXRP, which is redeemable for the underlying FXRP. It could be deployed freely across the network’s DeFi ecosystem. Firelight’s ultimate goal is to provide XRP holders with staking rewards while offering DeFi protocols a crucial insurance layer.
Significantly, Firelight’s successful journey could be attributed to the significant backing from industry heavyweights like Ripple, Sentora, and Flare. With Sentora’s extensive experience in risk management and liquidity programs. Firelight is well-positioned to provide DeFi protocols with a much-needed insurance layer.
According to Conor Sullivan, institutions are eager to tap into DeFi yield, but a lack of robust cover primitives is a major obstacle. Firelight’s XRP staking solution is designed to address this gap, offering a chain-agnostic system that can be integrated with any protocol on any chain. With active discussions underway with several DeFi protocols, Firelight is poised to make DeFi insurance, which is a standard feature in the industry.
