Skip to content
FAssets logo
Firelight
Back to All News

Firelight Is Live, Backed by Staked FXRP on Flare

Ecosystem

Firelight Protocol is now live. Its first cover applies to Sentora's USD Protected Vault and Protected RWA Vaults. Sentora incubated Firelight, Sentinel Labs develops and maintains it, and it runs on the Flare Network.

Firelight provides a shared protection layer for DeFi vaults. Beyond Sentora, Veda and Upshift are integrating it at the infrastructure layer, so any operator building on them can turn on protection for its own vaults.

Every covered vault draws on the same capital: a single Firelight Vault on Flare, where stakers deposit FXRP. XRP holders can now supply that capital through Flare Smart Accounts, where one signature from an XRPL wallet mints FXRP and deposits it.

The protection gap

Onchain capital increasingly sits in vaults, and protection for that capital has not grown at the same rate. Capital that backs onchain cover equals about 0.14% of the nearly $100 billion in DeFi. As more institutions allocate to DeFi, this gap matters more.

Firelight adds protection at the vault level. Depositors in a covered vault have cover without the need to research or buy a separate policy. Firelight registers cover terms onchain. An independent Risk Consortium of five firms (Hypernative, Native, Credora, Cyfrin, and GFX Labs) checks each event against criteria that Firelight publishes in advance.

What's live today

Firelight cover is built into two Sentora products:

  • Sentora USD Protected Vault gives diversified access to USD-denominated strategies that run fully onchain on established DeFi protocols.
  • Sentora Protected RWA Vaults run strategies built around real-world assets (RWAs), including leveraged looping and lending in markets that accept RWAs as collateral.

The strategies in both vaults run as before. Firelight adds verifiable onchain protection against defined protocol failures to the deposits in them.

Veda and Upshift are integrating Firelight at the infrastructure layer. Any operator that builds on Veda or Upshift can turn on protection for its own vaults, backed by the same Firelight Vault.

The capital behind the cover starts on Flare

In traditional insurance, one insurer takes on the risk under a contract. Firelight spreads that role across stakers. Stakers deposit FXRP into the Firelight Vault, which sits outside the protocols it covers, and the vault's capital backs the full portfolio of elected coverage.

XRP is the first capital in the vault. FAssets, part of Flare's core network infrastructure, makes XRP programmable on Flare as FXRP without a third-party bridge. The deposit cap for aggregate staked positions is now $115 million XRP. The asset, the infrastructure, and the coverage layer all sit on one network.

How cover works

Firelight registers the parameters, scope, price, and capacity of each cover onchain. The covered technical and economic events are named in advance: smart contract exploits, oracle failures, governance exploits, bad debt and depegs caused by mechanism failure, and redemption failures.

When an exploit is confirmed:

  1. Firelight programmatically identifies every eligible active position in a covered vault within the affected market.
  2. ZeroShadow, Firelight's designated security partner, publishes an exploit report.
  3. The Risk Consortium independently validates the event, confirms the loss and publishes an onchain attestation.

The Consortium reviews every cover event before the protocol can release a payout. It checks each event against the published coverage criteria and authorizes it through a public onchain attestation.

Depositing through Flare Smart Accounts

Deploying XRP into Firelight through Flare Smart Accounts (FSA) requires only XRP. Connect a supported XRPL wallet and select mint and deposit. FSA mints FXRP (XRP wrapped on Flare) and deposits it into the Firelight Vault in one flow. This flow does not require FLR, and fees are charged in FXRP.

What that one signature does:

  1. Your XRPL wallet sends XRP on the XRP Ledger, with your instruction attached.
  2. Flare's Data Connector verifies the transaction.
  3. FAssets mints FXRP 1:1 on Flare.
  4. The FXRP is staked into Firelight, and stXRP is credited to your Flare smart account.

Your smart account is linked to your XRPL address, and only that address controls it.

In order to unstake and withdraw, initiate the process on the web app and wait for the unstaking period to elapse. As emissions accrue and cover is enabled, the unstaking window increases to match the 30-day coverage periods. Then withdraw to FXRP and redeem to XRP. The XRP goes back to the XRPL address that opened the position.

Start at fsa.flare.network

What stakers earn

Stakers provide economic security to the protocol, and their deposits are subject to slashing. In return, they receive a share of protocol emissions. Program operators pay fees to enable cover on their vaults, and these fees fund emissions. Emissions follow total protocol revenue, so they increase as operators enable more cover.

Emissions stream to stakers continuously in FXRP. Fees paid in USDC convert to FXRP and go into each staker's position automatically, which increases its redemption value over time.

The first protocol emissions also go to early contributors, in proportion to the Firelight Points each eligible address earned during the protocol's development, growth, and launch. Firelight will publish eligibility and claim details through its official channels in the coming days. Please treat claim links from other sources as scams.

The risks stakers take on

Firelight Coverage is not insurance. Staking into it means taking on risk so that depositors in covered vaults are protected.

  • Your deposit backs cover and has no cover of its own. Stakers earn a share of protocol emissions in return for providing economic security to the protocol. Their staked capital is subject to slashing.
  • Rewards carry the same risk. Compounded rewards stay in the vault, so slashing applies to them in the same way as to your original deposit.
  • Exits take time. Deposits back 30-day coverage periods, so unstaking and withdrawals take longer than in Phase 1. Phase 1 positions convert automatically. 
  • Capacity is capped. Aggregate staked positions are capped at $115 million XRP.
  • Each layer carries contract risk. Depositing through FSA relies on the FSA, FAssets, and Firelight contracts. Audits and monitoring reduce this risk, and some risk remains.

Read Firelight's docs before you deposit.

Built on strong foundations

Flare is the blockchain for data. Its enshrined protocols, the Flare Time Series Oracle and Flare Data Connector, make digital assets that settle elsewhere, starting with XRP, work in onchain finance. FXRP, the first FAsset, represents XRP 1:1 on Flare and has passed 150 million minted, with more than 90% deployed in onchain finance across seven networks. Firelight turns staked FXRP into onchain cover, backing protocols against exploits, oracle failure and bad debt.

Sentora's risk infrastructure supports Firelight. It applies more than 1,000 proprietary risk models across $2 billion in deployed assets and more than 300 monitored strategies. OpenZeppelin, Coinspect, and 0xMacro audited Firelight's contracts, and Firelight completed a public bug bounty through Immunefi.

Firelight raised $8 million in seed funding before launch. Gumi Cryptos Capital led the round, with participation from Maven 11, Metalayer, and Tribe Capital.

Get started

Cover across DeFi, capital that starts on Flare.