# Core Features

Core components that play an integral part in Firelight:

1. **Vaults** are smart contracts that manage staked FXRP, and mint liquid staking tokens. They follow the ERC-4626 standard and are fully backed by the underlying asset deposited into the vault.
2. **Liquid Staking Tokens (stXRP)** are ERC-20 tokens representing staked positions. They remain fully transferable and DeFi-compatible while accruing value through exchange rate adjustments.

These components form a staking ecosystem where XRP holders may earn protocol rewards without sacrificing liquidity.


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