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.

Source: CryptoSlate