DeFi capabilities finally meet demand: XRP staking hits a $30 million TVL in just 90 minutes since inception.
Firelight Finance has just brought something the XRP Army had longed for – Ripple’s native XRP coins have lacked staking ability. Now, a liquid staking token known as stXRP is coming to solve this long-term issue.
Highly-Awaited XRP’s Liquid Staking Arrives On Flare
This is done via the new liquid staking protocol on Flare (FLR), focused on staking rewards based on a unique decentralized finance (DeFi) insurance model. The new model is rolled out in a couple of phases, erasing the high cost of re-staking frameworks. Sentora makes this happen as the main technical contributor & Firelight incubator.
According to Firelight’s Chief Security Officer (CSO) Connor Sullivan, the new staking project aims to claim unchartered territory in DeFi use cases beyond Ethereum (ETH). “We focus on assets with a structurally lower cost of capital, like XRP, instead of trying to outcompete ETH DeFi yields”, – explained Mr. Sullivan in a press release.
How Firelight’s Red-Hot Staking Mechanism Works
The FAssets system on Flare (FLR) is used to bridge Ripple (XRP) coins. In order to make use of the liquid staking opportunity, Web3 enthusiasts deposit FXRP, the wrapped version of XRP on Flare’s network. This is then accordingly traded to stXRP at a 1:1 rate, enabling crypto investors to gain yield across multiple staking plans at the same time.
Firelight Finance’s XRP staking rewards will go live during Phase 2, which is planned for an early 2026 release. That’s if the qualified DeFi protocols adopt the new DeFi insurance model & pay the coverage fees. For now, the adoption rates are skyrocketing – the XRP staking protocol inked 14M FXRP tokens being staked in just 90 minutes into launch.
In Firelight’s case, the stXRP token functions as a liquid receipt for the user’s funds to be available across the whole Flare ecosystem, including liquidity pools (LPs), decentralized exchanges (DEXs) & lending protocols, maximizing the customer’s yield.
On The Flipside
* Investors from the United Kingdom (UK) & European Union (EU) are massively reporting location bans from accessing the XRP staking ecosystem on Flare.
Why This Matters
The new staking mechanism solves two key issues: DeFi protocols get an extra insurance layer against hacks & scams, while Web3 enthusiasts are able to profit from several staking contracts at once.
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