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Firelight officially launched a new XRP-based DeFi insurance protocol on December 3, leveraging Flare Network’s infrastructure to bring institutional-grade security and new yield opportunities to XRP holders.
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. pic.twitter.com/hQN2cJIwwZ
— CoinMarketCap (@CoinMarketCap) December 3, 2025
A New Security Engine for DeFi Built on XRP
The protocol is designed as a financial security engine for DeFi, enabling users to provide insurance coverage to decentralized applications by staking XRP.
Using Flare Network’s FAssets bridging technology, users can safely bring XRP into the Flare ecosystem. The bridge operates with overcollateralization, distributed governance, and has already undergone third-party audits.
When users stake their XRP, they receive stXRP, a liquid staking token (LST) that allows them to maintain liquidity while their underlying XRP remains locked. stXRP can then be used within other DeFi protocols, expanding utility for long-term XRP holders.
The initiative is part of a broader strategic collaboration between Sentora and Flare Network.
Security Against Hacks + Yield for XRP Holders
Firelight’s protocol aims to address two major industry needs simultaneously:
- Increasing protection against rising DeFi hacks, and
- Delivering new yield opportunities for XRP holders, an asset historically limited in DeFi participation.
Security audits have been completed by OpenZeppelin and Coinspect, while a bug bounty program is underway through Immunefi to strengthen resilience against exploits.
Firelight chose XRP as the backing asset due to Flare’s unique connectivity between the XRP Ledger (XRPL) and an Ethereum Virtual Machine (EVM)-compatible environment, enabling cross-chain utility without sacrificing safety.
According to Firelight, stakers earn rewards for providing insurance coverage, while DeFi projects can purchase transparent, on-chain insurance to mitigate protocol risks.
Staked XRP remains locked on XRPL, but can be unstaked with a short waiting period, providing flexibility for users.
The launch brings a significant new use case to XRP, offering yield, enhanced security tooling, and institutional-grade risk management infrastructure that could broaden XRP’s role within the DeFi ecosystem.
