Firelight DeFi protocol locks XRP-linked tokens and imposes 30-60 day withdrawal delays

Following its Oct. 6 activation, Firelight, a DeFi cover protocol on Flare, automatically moved existing depositors' staked Flare's XRP (FXRP) into the coverage phase, subjecting it to pooled slashing exposure and longer withdrawal waits. This change establishes a fee-funded role for XRP-linked collateral but separates income accrual from risk exposure; current rules mandate 30-60-day exits and halt new vault reward accrual upon unstaking, though claims from the earlier backing period can still reduce returned assets. The protocol's buffer held approximately 1,000,002.59 USDT0 on Oct. 14, but the reserve's adequacy remains unreconciled against current liabilities and pending claims.