XRP holders will have new yield opportunities as the Firelight Protocol debuts

Backed by Flare and Sentora, Firelight is taking a security-first approach to launching and introducing XRP staking capabilities.

XRP holders are about to start earning passive income from their assets following the launch of the decentralized finance chain (DeFi), Firelight Protocol. The release of the network provides native staking and yield capabilities for Ripple’s native token.

This is evident from a press release sent to CryptoPotato, Firelight’s services include an on-chain economic security primitive designed to protect DeFi assets from exploits.

Firelight Introduces XRP Staking

The launch of Firelight will take place in two phases. The first allows XRP holders to deposit their assets into vaults and receive stXRP, a 1:1, fully backed ERC-20 liquid token that is transferable and usable across the Flare DeFi ecosystem. Flare is an interoperability blockchain that allows smart contracts to access data across other chains and the internet.

On Flare, market participants can use stXRP to trade on decentralized exchanges, as collateral in credit pools, or to contribute to liquidity pools. By depositing XRP into Firelight’s Launch Vault, users are also eligible to earn Firelight Points.

According to the official site, Firelight’s vault attracted more than $4.2 billion worth of tokens in the first few hours of launch.

During the second phase of the launch, Firelight will achieve its sole purpose of deploying capital by deploying their XRP to support a DeFi hedge mechanism. This ensures that the protocol supports the real demand to provide rewards to stakers.

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An approach where safety comes first

Notably, Firelight is taking a security-first approach to the launch and introduction of XRP staking capabilities. The protocol is supported by the blockchain solutions platform Sentora (formerly IntoTheBlock) and Flare. Sentora acts as a technical service provider, while Flare acts as a bridge to connect XRP to the DeFi ecosystem. Ripple supports both Flare and Sentora as they share a commitment to expanding DeFi capabilities for XRP.

In addition, Firelight has undergone three audits to ensure maximum compliance with security protocols. The chain was monitored by leading security platforms OpenZeppelin and Coinspect, and by a bug bounty program supported by Immunifi.

“Their combined expertise in secure interoperability, protocol design and network operations provides Firelight with deep technical support and a clear path for long-term ecosystem growth so that XRP holders and developers can build, secure and scale real-world applications with confidence,” the Firelight team added.