Firelight forces XRP-linked tokens lockup as withdrawal delay queue grows

Existing depositors in Firelight, a DeFi cover protocol on Flare, now supply capital that can be used to pay losses at covered vaults. Its Oct. 6 activation automatically moved their staked Flare's XRP (FXRP) into the coverage phase, bringing pooled slashing exposure and a longer wait to withdraw. The change gives XRP -linked collateral a fee-funded role, but separates the end of income from the end of risk. Firelight's current rules describe 30-60-day exits and stop new vault reward accrual when unstaking begins, while claims tied to the earlier backing period can still reduce the assets returned. Firelight's launch announcement names Sentora's USD Protected Vault and Protected RWA Vaults as its first live cover integrations, and Flare says existing Phase 1 positions convert automatically.