XRPFi's core focus is practical utility. By offering XRP as a staking solution via Firelight, Flare and Sentora provide the most practical utility to XRP holders. This solution maintains liquidity via stXRP, allowing users to strategically plan positions and move tokens, while letting users maintain the custody of their FXRP. This guide elaborates on everything you need to know about Firelight and staking FXRP using Bifrost Wallet.
What is Firelight?
Firelight is a cover protocol on Flare that turns staked FXRP liquidity into protection for DeFi protocols. Users stake FXRP and receive stXRP, a liquid receipt they can use across Flare Network’s DeFi ecosystem. They also earn Firelight Points as long as their FXRP is staked. Protocols purchase transparent cover for defined risks. Premiums paid by protocols fund the rewards paid to the stakers and the pooled capital pays valid claims. Everything settles onchain, so pricing, utilization, and claims are visible.
What You Need Before You Stake FXRP
Before staking FXRP on Firelight, make sure you have the following prerequisites ready:
Flare (FLR) for Gas: Some amount of FLR in your Bifrost Wallet to pay transaction fees. Ensure you have a few FLR so you don’t get stuck mid-transaction. You can acquire FLR either by purchasing through Bifrost Wallet’s in-app Buy module, buying it on a centralized exchange and withdrawing to your Bifrost Wallet, or performing a cross-chain swap from another chain to Flare.
FXRP (Wrapped XRP on Flare): FXRP is a wrapped and fully backed version of XRP that lives on the Flare Network. You will need FXRP in your wallet to stake on Firelight. This means if you currently hold XRP (on XRP Ledger or an exchange), you must convert it into FXRP on Flare by minting on FAssets website. You can check the guides to get started with minting FXRP on Flare:
Step 1 - Connect Your Bifrost Wallet
With FXRP and FLR in hand, you’re ready to interact with Firelight.
Open Bifrost Wallet and tap the "Browser' icon to open the in-app web browser.
Navigate to https://firelight.finance
On the homepage, tap the “Stake XRP” button.
The first time you access the app, you’ll be prompted with Firelight’s Terms of Use and Privacy Policy. Read through the terms and tap “Accept” to proceed.
Connect Wallet: On the Firelight app, click the “Connect Wallet” button at the top right. Select “WalletConnect” from the list.
Select Bifrost Wallet from the list of available wallets.
Step 2 - Stake Your FXRP (Deposit & Stake)
Now comes the main part: staking your FXRP on Firelight to get stXRP. Firelight’s Phase 1 has a single vault which accepts FXRP and issues stXRP at a 1:1 ratio. We will walk through depositing FXRP into this vault.
Open the XRP Vault: On the Firelight app, you should see a list of available vaults. Locate the Staked XRP Vault. Tap it to expand the vault details. Here you can see information like the vault’s APY, TVL, limit, your deposit, etc.
Enter Amount to Stake: Enter the amount of FXRP you wish to stake. You can stake any amount up to your available FXRP balance (and within any vault limits). Check the vault’s minimum or maximum limits if displayed. If the vault has a minimum stake (e.g., 10 FXRP) or is near capacity, the UI should indicate that.
Deposit and Stake: Once the amount is entered, click the “Deposit and Stake” button. This will trigger the first onchain action. Before actually depositing, the Firelight smart contract needs permission to use your FXRP tokens. Thus, the app will now prompt you to approve the token.
Approve FXRP Spending: What this means is you are allowing the Firelight vault smart contract to transfer your FXRP (the amount you intend to stake) from your wallet.
Confirm Transaction: A prompt will appear in your Bifrost Wallet asking for token approval. Approve the transaction in your wallet. Wait a few seconds for this.
Finish Staking (Deposit): After approving, Firelight will now allow you to finalize the deposit. Tap the “Finish Staking” button. Bifrost Wallet will prompt you to confirm this transaction. It will be a transaction that sends your specified FXRP amount from your address to the vault contract. Confirm and submit this in your wallet. Once it’s confirmed, Firelight will mint and deliver stXRP to your wallet automatically, in the same amount as the FXRP you deposited. You should see a success message in the UI.
Congratulations, you’ve staked your FXRP! You are now holding stXRP which represents your staked XRP position in Firelight’s vault. As long as your FXRP remains in the vault, it is earning rewards according to the vault’s design (e.g., accumulating points or yield from secured services). Meanwhile, you can freely use or transfer the stXRP token itself.
Step 3 - Withdraw Your FXRP (Unstaking)
At some point, you’ll want to unstake and get your FXRP back. Firelight’s withdrawal process has two steps:
First, you initiate a withdrawal (which burns your stXRP and starts a cooldown period).
You claim your FXRP after the cooldown period ends.
This two-step process is designed to protect the system (it’s similar to an unbonding period in other staking systems). Here’s how to withdraw:
Navigate to Withdraw Tab: In the Firelight app, find and tap the “Withdraw” section under the vault.
Enter Withdrawal Amount: You’ll see an input to specify how much FXRP you want to withdraw. Enter the amount you wish to withdraw. You must have at least that amount of stXRP in your wallet to initiate the withdrawal.
Start Withdrawal: Tap the “Initiate Withdrawal” button. The app will prompt a confirmation in your Bifrost Wallet.
Confirm the transaction in Bifrost Wallet when prompted. This transaction will have you sending your stXRP back to the vault (essentially burning it). You will see a confirmation in the Firelight UI, your stXRP tokens for that amount will be gone from your Bifrost Wallet.
When you navigate to the “Withdrawals” tab, you will see “Pending” status for your withdrawal request.
Cooldown Period: Now you must wait for the cooldown period to elapse. Firelight enforces a waiting period (unbonding period) between initiating a withdrawal and claiming the FXRP. The length of this period can vary by vault. In the Withdrawals table, look at the “Withdrawal Completion” column for your request. It should show the date/time when your FXRP will be available to claim.
During this period, your stXRP is already burned (so you no longer earn any new rewards on that portion), and the corresponding FXRP is marked for release to you. The cooldown is a safety measure to prevent sudden large exits that could disrupt the vault.
Use this time to ensure you still have some FLR for the final claim transaction. You don’t need to keep the app open; the countdown is tracked onchain.
Claim FXRP: Once the cooldown period is over, return to the “Withdrawals” tab. Your pending withdrawal entry should now show a button “Claim FXRP” (instead of “Pending”). Click “Claim FXRP.” This will trigger the final transaction to release your FXRP from the vault back to your wallet. Confirm this transaction in Bifrost Wallet when it’s prompted.
After confirmation, the vault will send the FXRP back to your wallet. You have now successfully withdrawn, and your FXRP balance in Bifrost Wallet should increase by the amount withdrawn.
The status of that withdrawal request in the UI will change to “Claimed” or it will disappear from the pending list, indicating completion.
Important: If you initiated a withdrawal but forget to come back at the right time, don’t worry, your FXRP will remain in the vault waiting for you to claim. Just return whenever you’re ready after the unlock time and hit “Claim FXRP”. However, note that during this time it’s not earning any rewards (because your stXRP was burned). Also, you must claim using the same wallet that initiated the withdrawal, since the claim is tied to your address.
How Firelight Staking Works (Under the Hood)
Staking FXRP via Firelight involves a few moving parts and unique terms. In this section, we’ll break down the key concepts in plain language: XRP vs FXRP vs stXRP, what a Firelight vault is, and how lockups/cooldowns function. Understanding these will give you confidence and context for the steps you performed above.
XRP vs FXRP vs stXRP
You’ve encountered three related tokens: XRP, FXRP, and stXRP. How do they differ?
XRP: This is the native coin of the XRP Ledger (XRPL). XRP resides on its own network (not on Flare). It’s fast and fee-efficient for payments, but XRPL does not natively support smart contracts for DeFi. You cannot stake XRP on the XRP Ledger in the same way you stake on Proof-of-Stake chains, and XRPL’s capabilities for DeFi are limited. That’s where Flare comes in.
FXRP: This is “Flare XRP”, essentially a wrapped XRP token on the Flare network. Through the FAssets system, 1 FXRP is minted by locking 1 XRP on the XRPL. FXRP is an ERC-20 token on Flare that is fully collateralized and trust-minimized via Flare’s protocols (so it’s always redeemable for XRP). FXRP allows XRP holders to use Flare’s smart contract ecosystem; you can trade it, lend it, provide liquidity, and stake it in protocols like Firelight. In summary, FXRP gives XRP holders access to DeFi on Flare.
stXRP: This is a token you receive from Firelight when you stake FXRP in a vault. stXRP is an ERC-20 token on Flare. It represents your claim on the underlying FXRP you staked. Because it’s liquid, you can hold it, transfer it, or use it in other DeFi apps while your original FXRP remains staked in the Firelight vault. stXRP is minted and burned by the Firelight vault smart contract: you get stXRP when you deposit FXRP, and you give it back (burn it) when you want to withdraw FXRP.
Token | Network | How to Get It | Role & Usage |
XRP (Native) | XRP Ledger (XRPL) | Buy via Bifrost Wallet or send to Bifrost Wallet from other XRPL wallets or exchanges | Used for payments, cannot be staked on XRPL in the traditional sense. |
FXRP (FAsset) | Flare Network (EVM) | Mint by locking XRP (1:1) via Flare FAssets Swap any Flare asset to FXRP via Bifrost Wallet’s in-app swap | Wrapped XRP on Flare. Used for DeFi: trading, lending, staking in Firelight, etc. Always redeemable for XRP. |
stXRP (LST) | Flare Network (EVM) | Stake FXRP in Firelight vault | Liquid staking token representing staked XRP. Used in DeFi while earning from Firelight vault. Burn it to withdraw your FXRP. |
What Are Firelight Vaults?
A Firelight vault is essentially a smart contract on Flare that operates according to predefined, transparent onchain logic. In Firelight, there is a single vault for FXRP. This vault’s characteristics include:
Asset: FXRP is the only asset that can be deposited into Firelight’s launch vault. In Phase 1, you deposit FXRP, get stXRP in return and accrue Firelight points.
Rewards Mechanism: During Phase 1, users who stake FXRP will be rewarded with Firelight points. These points serve as an initial incentive and a measure of participation within the ecosystem. Upon the successful transition to Phase 2, depositors may receive fee distributions. These fees will be generated through the protocols that integrate and utilize Firelight Cover.
Cooldown: Withdrawals from the vault are subject to a cooldown period. For example, if a 7-day cooldown is in effect, you will be able to claim your FXRP from the vault after this period.
Lockups and Cooldown Periods
Lockup refers to any period during which your staked assets cannot be withdrawn. Cooldown is a specific kind of lockup that starts when you initiate a withdrawal request, forcing the depositor to wait a set time before they can retrieve their funds. In Firelight’s current FXRP vault:
There is no indefinite lockup, meaning you are free to initiate a withdrawal at any time. However, once you do, the cooldown period applies (so it’s not immediate).
The cooldown period serves to prevent bank-run scenarios and allow the system to adjust safely. It is a way to mitigate liquidity shocks from sudden redemptions.
The exact duration of the cooldown is determined by the vault’s parameters. You can see it on the Withdrawals page.
Using stXRP in Flare DeFi
One big benefit of Firelight’s design is that you get stXRP, a liquid token, when you stake. Instead of your FXRP being completely tied up and unusable, stXRP lets you remain liquid. Let’s explore what you can do with stXRP in the Flare ecosystem:
Hold or Transfer: You can simply hold stXRP in your wallet, knowing that it earns Firelight points. If you want to move your position to another wallet, you can send stXRP just like any other ERC-20 token. Be careful, though: you will need stXRP in whichever wallet will do the withdrawal later. If you send stXRP to someone else, essentially you are giving them the right to redeem that FXRP later. Only transfer to addresses you control or intend to allow to redeem.
Use as Collateral for Borrowing: stXRP can be used on lending platforms. For example, a Flare lending protocol would allow you to deposit stXRP as collateral and borrow another asset like a stablecoin against it. This way, you get liquidity (the loan) without selling your XRP, and you’re still earning whatever yield stXRP provides. Always monitor your loans due to volatility.
Provide Liquidity (DEX LP): You could pair stXRP with another token like FLR or a stablecoin in a DEX’s liquidity pool. By doing so, you earn trading fees from the DEX. For instance, an AMM (Automated Market Maker) on Flare might have a stXRP/FLR pool. You’d earn fees, and possibly liquidity mining rewards if offered. Keep in mind impermanent loss considerations when LPing.
Trade or Swap stXRP: If someone wants exposure to stXRP’s future yield or just wants to hold stXRP without going through the process, they might buy stXRP on an exchange. You could swap your stXRP for other assets on Flare DEXs if there’s liquidity. This could effectively let you exit your stake early by selling stXRP (the buyer would then be able to redeem the FXRP later).
Participate in Yield Markets / Derivatives: Some advanced platforms might let you use stXRP in yield optimizers or as part of structured products. One example could be using stXRP in a DeFi protocol to leverage up your position without facing liquidation in the usual sense. These are more complex and would require separate guides, but it shows how composable stXRP can be.
Stake in Other Protocols: There might be projects that accept stXRP for staking in their own system (for additional rewards) or that create new products around it. The DeFi ecosystem on Flare is growing, and stXRP becomes one more asset that developers can integrate.
You can click here to have a look at the available DeFi apps you can utilize your FXRP or stXRP.
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