Derived from Coindesk, Firelight, a new DeFi protocol built by Sentora and backed by Flare Network, has introduced XRP staking to provide on-chain protection against hacks. Users can stake XRP to earn rewards tied to DeFi 'cover,' which helps protocols absorb losses from exploits. The system operates in two phases: users deposit XRP to receive stXRP, an ERC-20 token, which can be traded or used in DeFi liquidity pools. The staked XRP then backs a cover pool to underwrite risk for participating protocols. Firelight uses Flare’s FAssets system to bring XRP into DeFi without centralized bridges. The protocol has undergone audits by OpenZeppelin and Coinspect and launched a bug bounty with Immunefi.
Firelight Launches XRP Staking for DeFi Insurance Protection
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