XRP holders can earn Kraken DeFi protection fees via Firelight
- —USDC protection premiums are converted into FXRP, boosting the Firelight pool's collateral
- —Yield accrues through stXRP redemption value rather than token emissions
- —Withdrawals take 30–60 days, with loss exposure continuing for part of the wait
- —Kraken vault compensation is capped at $100,000 per address per coverage period
Why it matters: The setup gives XRP holders a new recurring income stream, but premium volumes are unknown and slashing risk spans the whole pool.
Source: CryptoSlate