Vaults
Vaults are the core of Firelight’s architecture, designed to securely accept and handle staked assets.
Key Vault Functions
Token deployment is a core responsibility of each vault. The system accepts FXRP deposits from stakers and these tokens are in secure smart contracts.
The vault handles all aspects of the token, from initial deposit through to final withdrawal, with every transaction recorded on-chain.
LST issuance represents another critical vault function. Upon receiving deposits, vaults mint stXRP tokens proportional to the amount staked and the current exchange rate.
When users wish to exit their positions, the vault burns the corresponding stXRP and releases the underlying FXRP.
Vault Architecture
The vault system implements the ERC-4626 standard, ensuring compatibility and composability with DeFi protocols across the Flare ecosystem. The non-custodial design ensures users maintain control through cryptographic means rather than entrusting a centralized entity with their assets. The vault maintains full reserve backing between FXRP locked and stXRP issued.
Launch Vault Specifications
This vault accepts only FXRP as the deposited asset and issues stXRP as the liquid staking token.
The initial exchange rate is set at 1:1, providing clarity and simplicity for early adopters.
During the launch phase, there is zero slashing risk, allowing users to familiarize themselves with the system without concern for penalties.
Deposit caps will be implemented and adjusted dynamically based on demand, ensuring controlled growth and system stability.
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