Firelight says it is building a new on-chain protection system backed by staked XRP, as decentralized finance projects face growing security risks.
The project recently passed a major milestone, with more than 50 million XRP now staked on its system through Flare Network. This came after several large deposits from so-called “whale” investors, each contributing over 1 million XRP.
Firelight also expanded its capacity for FXRP deposits, showing rising demand for its staking and yield system.
In simple terms, users deposit XRP, convert it into FXRP, and stake it through Firelight’s system. In return, they receive stXRP, which can be used across other DeFi applications inside the Flare ecosystem.
Now the project is moving into its next phase.
Firelight says it is preparing a protection layer expected in the second quarter of the year. This system would act like a safety net for DeFi, helping cover losses caused by smart contract failures, bridge hacks, oracle errors, and other technical or financial risks.
The idea is that instead of only staking for rewards, users would also help provide insurance-style protection for the wider DeFi ecosystem.
The timing is important. Firelight pointed to growing losses in DeFi, saying exploit-related thefts reached more than $137 million in the first quarter of 2026 alone. These incidents include major hacks and cases where vulnerabilities were used to steal funds.
The company says its system has already been audited by security firms like OpenZeppelin and Coinspect, and that demand for its staking pools has been very strong. In earlier phases, deposit limits were filled within hours.
Firelight is also working with Sentora to design the new protection system. The goal is to create a market where protocols can buy coverage against different types of DeFi risks.
For XRP holders, the new model could turn staking into something more than just earning yield. It could also connect their funds to a broader safety layer designed to protect the entire ecosystem from major failures and exploits.
In short, Firelight is trying to turn XRP staking into both a reward system and a risk protection network for DeFi.
