Welcome to Firelight Protocol
Firelight Coverage adds an on-chain protection layer for DeFi positions. Program operators can elect cover on the vaults they run. Stakers supply backing capital. The Risk Consortium validates incidents against published coverage criteria and signals the protocol. The protocol pays program operators, who may distribute payouts to affected depositors under their vault terms.
Firelight Coverage is not insurance. It does not create a contract of insurance with Firelight, the Foundation, or a vault depositor. It is a protocol-based coverage mechanism that program operators elect on the vaults they run.
Who participates
Stakers
Stake FXRP to back cover and earn protocol rewards
Permissionless
Program operators
Elect to enable cover on the vaults they run. Hold the on-chain Cover Token. Determine distribution criteria for payouts to their vault's end users
Permissioned to institutions in the MVP
End users (vault depositors)
Deposit into a program operator's vault. Inherit certain protections on deposits through the operator's election of cover and distribution criteria
Set by each operator's vault
Curators
Design the vault strategies that program operators offer
Commercial arrangement
Risk Consortium
Independently validate incidents against coverage criteria and signal the protocol
Confirmed members
Firelight Foundation
Stewards the protocol and holds protocol treasury
Foundation entity
End users do not interact with Firelight directly. They deposit into a program operator's vault. Any payout they receive is governed by that vault's terms, not by Firelight.
Phase 1 and Phase 2
Firelight launched in Phase 1 as a single-asset staking protocol. stXRP was backed by XRP through FXRP on Flare and deployed into Firelight during the Launch Phase. Phase 2 (Coverage) extends that base with an on-chain coverage protocol backed by the same staked capital.
This documentation focuses on Phase 2. Useful Phase 1 reference material remains here, including FAssets, FXRP, and stXRP definitions, launch-vault audits, and the onboarding flow for new stakers.
Start here
Introduction explains what Firelight Coverage is, the problem it solves, who participates, and how the full flow works.
Core Concepts covers the risk framework, coverage types, period mechanics, and vault architecture.
For different audiences
Enabling cover on a vault you run: For Program Operators
Staking FXRP to back coverage: For Stakers
Assessing incidents as an independent reviewer: Risk Consortium
Reference
Risk and Pricing Model explains how risk components are monitored in real time to drive pricing, capital adequacy, and diversification.
Protocol Architecture describes the protocol contracts and service layers that support coverage.
Resources contains the FAQ, glossary, security information, and key links.
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