Firelight, a Flare-based protocol, lets XRP holders deposit FXRP into a vault and receive stXRP representing their position. The deposited FXRP will back coverage sold to DeFi protocols, with customers paying premiums that generate income for depositors. Total value locked stood at $71.74 million as of September 13, but withdrawals could extend from one to two days to nearly 60 days once 30-day coverage periods activate. Rewards stop when unstaking begins, and an eligible claim can reduce the amount ultimately returned to holders. The protocol has a First-Loss Buffer designed to absorb losses before staked FXRP is affected, though the current buffer size remains undisclosed.
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