XRP Holders Gain New Yield Opportunities as Firelight Protocol Debuts

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

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

Firelight to Introduce XRP Staking

The launch of Firelight will come in two phases. The first will allow XRP holders to deposit their assets into vaults and receive stXRP, a 1:1, fully backed ERC-20 liquid token that is transferable and can be used 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 swap on decentralized exchanges, as collateral in lending pools, or in contributing to liquidity pools. Depositing XRP in Firelight’s launch vault will also qualify users to earn Firelight Points.

In the first few hours after launch, Firelight’s vault has attracted more than $4.2 billion worth of tokens as per the official site.

During the second phase of the launch, Firelight will attain its sole purpose – allocating capital deployed by staking their XRP to back a DeFi cover mechanism. This ensures the protocol sustains real demand to provide rewards for stakers.

Taking a Security-first Approach

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

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

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