XRP Holders Pour In as Firelight Launches Staking Protocol

• Firelight has launched an XRP staking service to give free points to users for early participation.
• XRP Staking is in high demand, with products tied to the service seeing millions in capital hours after going live.

Firelight Finance has introduced an XRP staking protocol on the Flare. The new staking protocol introduces a liquid token called stXRP, which aims to earn rewards through a decentralized finance (DeFi) insurance model. 

Firelight XRP Staking Protocol Launches With Success

According to the Flare Network, the launch of the XRP staking protocol has entered Phase 1 of the rollout. 

Phase 1 focuses on liquidity bootstrapping, no slashing risk, and audited vaults. During this phase, users earn Firelight Points for early participation. 

The platform now offers a new native staking model for XRP. With it, users can earn passive income while helping to keep the blockchain secure.

This is a big achievement for XRP holders as such offerings are completely new. Firelight now changes this by enabling liquid staking on Flare.

Users first have to bridge XRP to Flare using FAssets. This creates FXRP, a wrapped, decentralized version of XRP. 

Subsequently, users can deposit FXRP into the Firelight vault and receive stXRP on a 1:1 basis. 

At the moment, staking rewards are not active yet, even though users can now move stXRP across the Flare ecosystem. Firelight expects rewards to begin in Phase 2, planned for early 2026. 

This, however, depends on whether DeFi protocols adopt the insurance model and pay coverage fees.

The Firelight design follows the same principle of restaking, where users reuse crypto assets to secure applications. It, however, applies the concept differently from early Ethereum-based attempts such as EigenLayer. 

Connor Sullivan, the Chief Strategy Officer of Firelight, highlighted the cost of capital as the main issue with earlier restaking frameworks. Sullivan added that instead of trying to outcompete ETH DeFi yields, Firelight focuses on assets with a structurally lower cost of capital, like XRP.

stXRP TVL Soars Past $55M

The launch saw explosive demand from the XRP community. In just a few hours after launching, the stXRP total value locked (TVL) soared to more than $55 million. 

According to the Flare Network, this surge proves XRP staking demand.

Community discussions on X show users bridging XRP, minting stXRP, and deploying it across Flare DeFi apps for double rewards. Firelight unlocks idle capital for yield, appealing to long-term XRP holders seeking passive income without selling their coins.

Firelight is backed by Sentora and has Flare Network providing the tech behind the product. 

It is worth noting that Ripple Labs backs both Flare and Firelight with a mission to add more XRP value.

In a previous article, we discussed Enosys Loans launched on Flare. This comes as the first XRP-backed stablecoin with CDP. 

The token help users to generate an overcollateralized and trustless stablecoin with no need to give up their XRP.

Besides these products, Flare confirmed recently that XRP holders can access DeFi easily via its new Luminite wallet.