Firelight introduces yield opportunities for XRP holders with extended withdrawal periods

Firelight is launching a protocol on Flare that allows users to deposit FXRP to earn yield by backing protection for DeFi protocols. While this enables income generation from idle assets, it introduces significant liquidity constraints, as withdrawals may take up to 60 days depending on coverage periods. Depositors also face the risk of collateral reduction if claims are filed against the coverage they back. As of September 13, 12:07 UTC, Firelight reported $71.74 million in total value locked, though it remains unclear if the generated premiums will sufficiently compensate for the associated risks.