Staking Overview

Staking in Firelight Coverage means contributing FXRP into the Firelight protocol to back coverage and earn a share of protocol emissions. This page covers the basics: what happens at deployment, what a staker holds, and how this relates to the Phase 1 staking product Firelight launched with.

What you stake

At the MVP, the single supported asset is FXRP, the staking token Firelight launched with in Phase 1, backed by XRP via FXRP on Flare. Staking is permissionless. When you stake stXRP to the Firelight protocol, your collateral is utilized to back cover that is actively enabled on existing program vaults, and you accrue a share of protocol emissions plus potential emission boosts.

Once coverage is live on mainnet, all capital in the protocol is utilized to back active coverage and is subject to slashing if a validated claim exhausts the First-Loss Buffer. Stakers accept that exposure in exchange for a share of protocol emissions. Slashing behavior and the loss waterfall are covered in Risk and Exposure.

What you receive at deployment

A deployment produces an on-chain position in the vault that:

• Tracks your proportional claim on the vault's assets

• Accrues both base rate emissions and potential claimable coverage-related rewards

The vault follows the ERC-4626 standard, so the position's redemption value against the underlying rises as rewards accrue. The supply of your vault shares does not expand as rewards accrue. Instead each share becomes redeemable for more of the underlying, effectively compounding the protocol emissions into the deployed capital.

Activation timing

Deployments activate without waiting for a period boundary. Each deployment moves through compliance screening; once it becomes active, rewards (base rate emissions) begin streaming. There is no period-aligned waiting for new deployments to start earning.

Where the underlying sits

Staked capital reside in the vault. The vault itself is non-custodial at the smart-contract layer. Stakers retain control of their capital cryptographically.

Relationship to the Phase 1 staking product

Firelight Coverage builds directly on the stXRP product Firelight launched with in Phase 1. Existing stXRP holders can stake into the Firelight protocol to begin backing and earning premium income. The core staking mechanics are unchanged. Coverage adds the premium distribution and the corresponding slashing exposure. The Phase 1 documentation is being retired as the coverage protocol goes live; the staking content that remains relevant lives in this section, and the Phase 1 reference terms (FAssets, FXRP, FLR, Launch Vault) are defined in Glossary.

Launch phase positions auto-convert

If you held a position in the Phase 1, that position is automatically converted to a staked position in the Firelight protocol when Phase 2 goes live. No action is required from the staker. Your position transitions into a backing position at cutover, and from that point earns the base rate emissions from premiums. The corresponding slashing exposure also begins at the transition, in line with the rest of the vault.

Where to read next

• Emission Mechanics covers how premium income is distributed and how Firelight Points work.

• Risk and Exposure explains slashing, the loss waterfall, and how capital converts into coverage capacity.

• Deployments and Withdrawals walks through the operational flow.