Firelight introduces XRP staking on Flare, offering yield and on-chain exploit cover. This innovation aims to enhance DeFi security standards.
Firelight, a new decentralized finance (DeFi) protocol, is bringing staking to XRP users. It also provides protocols with some form of protection against network hacks. Built by Sentora and supported by Flare Network, Firelight allows holders of XRP to stake their tokens. This results in rewards related to demand for DeFi “cover.”
Staking Innovation Unlocks New Utility for XRP
This protection can help protocols absorb the losses from exploits. The protocol revealed this in a press release on Wednesday. The idea is analogous to insurance in the traditional financial world. This is an area in which the $160 billion DeFi sector still lags. Billions of dollars down in exploits make a broader adoption tougher.
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Connor Sullivan, chief strategy officer at Firelight, said in a statement. He said, “At this stage of the maturity of DeFi, it needs the same infrastructure of risk.” This supports each other financial market. “Firelight provides an efficient capital protection layer that can absorb shocks,” he added. This layer mitigates the technical and economic risk. Moreover, it makes the whole ecosystem more resilient.
As of December 3, 2025, the price of XRP is approximately $1.90 to $2.22. Some sources quoted the recent increase in value. XRP has been on an absolute tear with reports citing a gain of over 10%. This occurred on December 3, 2025.
XRP does not support native staking on its own ledger. Firelight, based on the Flare network, allows XRP holders to deposit their tokens. They receive a liquid staking token known as stXRP in return. This allows them to earn yield. This is a feature that was not previously available for XRP.
They can also utilize stXRP across the Flare DeFi ecosystem. Examples include swapping on decentralized exchanges. Furthermore, it can be used as collateral. The main innovation is to use the staked XRP as an on-chain insurance layer.
On-Chain Cover Addresses Major DeFi Security Risks
This is the capital that will be used to provide cover. This cover can be contracted by other DeFi protocols. This protects their assets in case of hacks or exploits. This directly addresses a big risk for the DeFi space.
The protocol is supported by both Sentora and Flare Network. Both are supported by Ripple. They hope to increase the utility and role of XRP. This is a part of the bigger ecosystem of DeFi.
The protocol was audited three times before launch. Firms included OpenZeppelin and Coinspect. This was in addition to a bug bounty program supported by Immunifi. This ensured that maximum security was sought.
The system is launching in two separate phases. Phase 1 gives XRP holders the ability to deposit XRP for stXRP. They earn “Firelight Points.”
Phase 2 is the stakeholder capital deployment. This will give the actual DeFi cover mechanism. This creates incentives for stakers. The rewards are based on real demand for this insurance in the real world.
This is a very important initiative, and it aims to bring a layer of protection to DeFi space. This protection is prevalent in traditional finance. It also opens up new value for the holders of XRP. This offers a yield-earning opportunity to a previously static asset.