Firelight said it is preparing an on-chain protection layer backed by staked XRP as DeFi projects face renewed security pressure. Firelight surpassed 50 million staked XRP after whale deposits and expanded capacity for FXRP vaults. The protocol plans a Q2 protection layer covering smart contracts, bridges, oracles, and economic failures. Firelight said exploit losses topped $137 million in Q1 as demand rose for on-chain protection.
The plan follows a new milestone for the protocol, which said staked XRP on Firelight has now passed 50 million on Flare. According to a press release, Firelight crossed 50 million staked XRP after a series of large deposits. Firelight operates on Flare’s FAssets system, where users deposit XRP, mint FXRP, and stake it in Firelight’s vault in return for stXRP. Firelight said the current vault is designed to pool capital for its DeFi Cover engine.
In a recent protocol update, the team said the cover product is planned for Q2 and would track ‘Total Value Covered,’ a measure tied to protected capital rather than deposited capital alone. The protocol said the protection layer is meant to cover risks tied to smart contract failures, oracle issues, bridge exploits, and other economic vulnerabilities. Firelight expects this second phase to let other protocols buy protection backed by the staked FXRP pool. Firelight linked the rollout to the pace of recent DeFi losses.
Thefts tied to DeFi exploits in the first quarter of 2026 passed $137 million, while Firelight pointed to a recent stablecoin exploit that produced $23 million in unbacked tokens after a private key leak. The same update said the first 25 million FXRP deposit ceiling filled within six hours, and the raised 65 million FXRP cap moved past the halfway mark soon after. Firelight said it is building the protection layer with Sentora.
Sentora is an institutional DeFi intelligence platform formed through the merger of IntoTheBlock and Trident Digital. The partnership places Firelight’s next phase around risk management as much as staking. For XRP holders on Flare, the plan would tie staking activity to a protection market that targets DeFi security failures across multiple risk categories.
Firelight is developing an on-chain protection layer backed by staked XRP as DeFi security concerns mount. The protocol has surpassed 50 million staked XRP on Flare and expanded FXRP vault capacity, setting up a Q2 rollout that would cover smart contracts, bridges, oracles, and other economic vulnerabilities. Exploit losses in Q1 reportedly reached $137 million, underscoring demand for on-chain protection.
The protection layer is designed to pool capital for the DeFi Cover engine and would let other protocols purchase protection backed by the staked FXRP pool, with the metric tracked as Total Value Covered rather than deposited capital alone. Firelight said Sentora, the institutional DeFi intelligence platform formed by IntoTheBlock and Trident Digital, is helping build the layer, aligning risk management with staking.
The milestone comes as the pace of DeFi losses continues to drive demand, including a separate stablecoin exploit that produced $23 million in unbacked tokens after a private key leak. The first 25 million FXRP deposits filled within six hours, and the 65 million cap moved past the halfway mark shortly after, highlighting strong market interest in on-chain protection across multiple risk categories.
Leave a Reply