Flare Network has announced a new protocol, Firelight, designed to transform the XRP ecosystem by enabling liquid staking of assets.
What is Firelight?
Firelight is a liquid staking protocol designed to activate dormant XRP through decentralized finance (DeFi). It allows users to mint FXRP, a fully collateralized representation of XRP on the Flare Network. When FXRP is deposited into the Launch Vault, users receive an equal amount of stXRP, an ERC-20 token that can be traded, lent, or utilized across DeFi platforms while still earning staking rewards.
Support from Institutional Investors
Flare CEO Hugo Philion noted that companies like Nasdaq-listed VivoPower have already invested $100 million worth of XRP through Firelight for stable yield. Uphold, one of the largest XRP holders with approximately 1.8 billion tokens, has also confirmed plans to integrate FXRP. This underscores institutional investors' confidence in the system.
Security and Scalability of Firelight
Firelight will ensure high levels of security and trust. All collateral agents are KYC-verified, and FXRP is backed by a diversified pool of over-collateralized assets, including FLR and stablecoins. This guarantees users both performance and protection, critical for attracting institutional and retail investors alike.
Firelight opens up new opportunities for XRP holders, allowing them to earn and participate in DeFi while retaining liquidity and security within the Flare ecosystem. The deployment of this technology on Flare's mainnet is expected soon.
