XRP holders can expect new avenues for passive income following the launch of the Firelight Protocol, a decentralized finance chain. This network introduces staking capabilities for Ripple’s native token, enhancing the potential for yield generation.

According to a release sent to CryptoPotato, Firelight aims to bolster the security of DeFi assets against potential exploits through an innovative on-chain economic security model.

Firelight to Introduce XRP Staking

The rollout of Firelight consists of two phases. The first phase invites XRP holders to deposit their tokens into designated vaults, receiving in return stXRP — a liquid ERC-20 token that is fully backed and transferrable within the Flare DeFi ecosystem. Flare facilitates interoperability by allowing smart contracts to access diverse data from both other blockchains and the broader internet.

On Flare, holders can utilize stXRP for various purposes, including trading on decentralized exchanges, acting as collateral in lending pools, and contributing to liquidity pools. Furthermore, depositing XRP into the Firelight vault qualifies participants for earning Firelight Points.

Within just hours of its launch, Firelight attracted over $4.2 billion worth of tokens, as noted on their official platform.

Firelight Protocol Growth

During the upcoming second phase, Firelight will focus on capital allocation derived from staking XRP to support a DeFi cover mechanism, ensuring that the protocol maintains demand for staked tokens and meets its reward objectives.

Security-First Approach

Firelight distinguishes itself by adopting a security-first strategy in its launch, aimed at optimizing XRP staking features. Backed by the blockchain solutions firm Sentora (previously known as IntoTheBlock) and Flare, it capitalizes on strong technical support to enhance its offerings. Furthermore, Firelight’s commitments to security are reinforced by three distinct audits from leading platforms such as OpenZeppelin and Coinspect, alongside support from a bug bounty program facilitated by Immunifi.

“Firelight strives to introduce a valuable layer for XRP, utilizing staked assets to back DeFi protocols against risks associated with hacks and exploits,” stated the Firelight team.

With these advancements, XRP holders and developers can look forward to building, securing, and scaling their real-world applications with confidence.