Frequently Asked Questions (FAQs)

Explore answers to frequently asked questions about the Firelight Protocol.

Vision and Product

1. What's our Vision?

Firelight is a protocol that leverages large-scale staked capital to deliver DeFi services.

2. What's our Mission?

Our mission is to be a permissionless security layer where XRP can trustlessly secure services and earn proportional rewards.

Architecture and Ecosystem

3. How does Firelight work?

Refer to our comprehensive description of the architecture behind Firelight in our Ecosystem Overview section.

4. When is Firelight expected to launch?

Firelight Protocol is expected to launch in Q4 of 2025.

5. What is the minimum amount that you'd need stake?

There is no minimum stake amount. However, users should consider gas fees when staking smaller amounts.

Staking and Rewards

6. What are Firelight Points?

Firelight Points are points that participants receive in return for staking and securing the network. Generate Firelight Points by maintaining stXRP in your wallet or deploying stXRP into specified DeFi protocols. The system will reward long-term ecosystem participation.

7. How do I Receive Protocol Rewards?

Initially, you earn Firelight Points.

8. Can I use my stXRP in DeFi?

stXRP tokens are fully fungible with each other and can be used in DEXs, lending protocols, and yield markets across the Flare ecosystem.

9. Is my XRP Safe when Staked?

Your XRP is secured in non-custodial smart contract vaults. You maintain control through cryptographic means rather than relying on a central party.

10. What is the Flare Network?

The Flare Network is building the blockchain for a data-rich, interconnected future, engineering the foundational technology to bridge decentralized systems with real-world utility. We're building on Flare.

For more technical information, head to Flare’s Developer Hub here.

Technical Questions

11. What Happens if I Lose my stXRP?

stXRP represents your staked FXRP. If you lose access to your stXRP tokens, you cannot redeem the underlying XRP.

12. What are the Risks?

In the initial launch phase, Firelight is not designed to have any slashing risks. However, smart contract, bridge, market price, regulatory, and other risks still remain. Should you need more details of these risks, head to the Risk section.

13. What does the Launch Vault do with FXRP?

The initial launch vault accepts FXRP as the deposited asset and issues stXRP as the liquid staking token. The initial exchange rate is set at 1:1.

The vault system implements the ERC-4626 standard, ensuring compatibility and composability with DeFi protocols across the Flare ecosystem. The vault maintains full reserve backing, guaranteeing a 1:1 correspondence between FXRP locked and stXRP issued.

14. What Happens When the Price of Staked XRP Rises?

Natural arbitrage opportunities maintain the peg between stXRP and its underlying value. When stXRP trades below its fair value, arbitrageurs can purchase the discounted tokens and redeem them for FXRP at the protocol exchange rate, capturing the spread.

Users can mint new stXRP and sell it on the open market to capture the premium. stXRP will always be mintable and redeemable at the stated exchange rate on Firelight.

15. What can be done with these Firelight Points?

Firelight Points are an early-stage incentive, you could earn passive protocol rewards over time by holding stXRP. More information about these points will be unveiled in the future.

16. Is there any Potential Loss of Original XRP?

You have custody over your FXRP — a tokenized version of XRP, built on the Flare Network to enable its use in decentralized finance (DeFi) and smart contract applications.

In addition, there are personal risks that you take when engaging in crypto products. These include the possibility of losing access to your wallet and hence it's critical to store your seed phrase securely. While there is a potential risk of smart contract exploits, Firelight is designed and built on a robust architecture and the security of your assets is a priority.

17. Is 1 XRP also 1 FXRP?

FXRP represents XRP on the Flare Network, maintaining a 1:1 peg.

18. How Long do you Have to Stake before you get Rewards?

In Phase 1, participants begin earning Firelight Points and start accumulating the first full hour after deposit. Your Firelight Points are determined primarily by the total amount of stXRP you hold and how long you hold it. The earlier you stake, the faster you’ll accumulate points thanks to early participation boosts.

Head to this section to learn how your points are calculated and what factors influence your overall rewards.

19. Is there a Lock-up Period?

There’s no lock-up period for the stXRP vault; however, there is an unstaking period. Withdrawing your staked assets involves 2 phases. Initiate the withdrawal by burning your liquid staking token (stXRP). For Phase 1, there is a maximum cooldown period of 2 days. Following the cooldown period, claim your underlying collateral (FXRP). This cooldown period is subject to change.

20. Are there going to be Economically Secured Services in Phase 2 of Firelight?

No, there won't be multiple Economically Secured Services (ESS) on Firelight. Instead, Firelight will harness the economic security to unlock on-chain cover in DeFi.