LATEST: 🔥 Firelight Finance has launched an XRP staking protocol on the Flare network, introducing stXRP as a liquid token designed to earn rewards through a DeFi insurance model. https://t.co/hQN2cJIwwZ ...

Core Insights - Firelight is a new decentralized finance (DeFi) protocol that enables XRP users to stake their tokens while providing on-chain protection against hacks [1] - The protocol aims to introduce a risk infrastructure similar to traditional finance, enhancing the resilience of the DeFi ecosystem [2] Group 1: Protocol Features - Firelight allows XRP holders to stake their tokens and earn rewards linked to the demand for DeFi "cover," which helps protocols absorb losses from exploits [1] - The staking process involves two phases: users deposit XRP to receive stXRP, a liquid ERC-20 token, which can be traded or used as collateral, and the staked XRP backs the Firelight cover pool [2] - If a protocol incurs a loss that meets Firelight's criteria, the cover pool can pay out from the capital staked by users, similar to how traditional insurers operate [3] Group 2: Technical Infrastructure - Firelight utilizes Flare's FAssets system to integrate XRP into DeFi, allowing users to mint FXRP, a wrapped version of XRP, without relying on centralized bridges [4] - The protocol has undergone audits by OpenZeppelin and Coinspect and has initiated a bug bounty program with Immunefi to enhance security [4] Group 3: Market Context - Despite XRP's significant market capitalization of $130 billion, it has lacked native staking options, with total value locked on XRPL at only $72 million [5] - Firelight aims to provide XRP holders with a new yield-earning opportunity while establishing a security layer that aligns with institutional standards in the DeFi space [5]