XRP Staking Phase 2 Extends Withdrawal Wait Up to 60 Days Amid Slashing Risks

Firelight's Phase 2 staking for Ripple (XRP) will extend the withdrawal waiting period to a maximum of approximately 60 days depending on the application date. When XRP is staked, it becomes part of decentralized finance (DeFi) cover capital, generating rewards alongside slashing risks.

Firelight's official Phase 2 documentation states that staked FXRP will be converted into collateral for DeFi cover products, with unstaking periods adjusted in 30-day increments based on the cover duration. The maximum withdrawal wait time was previously set at two days under Phase 1.

Users must convert XRP to Firelight's FXRP, an XRP-linked asset on the Flare Network, before staking it on Firelight. stXRP tokens representing stake shares are issued, and Firelight launched FXRP on its mainnet on September 24, 2025.

Firelight describes FXRP as an asset usable within Flare's DeFi services. Phase 2 shifts XRP from simple storage to capital backing other DeFi protocols' risks, where assets may be used for loss compensation if protocols suffer hacks, smart contract errors, or oracle failures.

The cover protocol's fees fund stakers' rewards, meaning both rewards and potential losses begin simultaneously. Firelight states that once cover is activated, rewards are paid out while slashing risk also emerges. Slashing involves proportional reduction of stake shares to respond to verified claims.

Withdrawals require burning stXRP to initiate unstaking. After application, reward payments stop, and FXRP can only be claimed after the remaining cover period plus the next full cover cycle has passed. With a 30-day cover duration, waiting periods may exceed one month depending on application timing.

While Firelight's operational rules suggest up to approximately 60 days for withdrawal waits, its official documentation does not explicitly state 'maximum 60 days.' If losses occur, the First-Loss Buffer—composed of Firelight's stablecoins—covers part of the loss before staked FXRP is proportionally slashed.

Public data does not reveal the buffer balance or how much cover it can support. The TVL figure of $72.84 million (approximately 978 billion KRW) reported by DefiLlama as of September 15 represents only the amount of FXRP held in vaults, not cover sales revenue or insurance premium earnings.

Discrepancies remain between official announcements and documentation regarding launch schedules and operational status. Firelight announced that protocol integration with its first cover product would begin in September, but its official release schedule marks Phase 2 as 'LIVE.' Some FAQs and risk disclosures still reference Phase 1's two-day cooling period and initial phase risks.

Firelight secured an $8 million seed round (approximately 107 billion KRW) led by Gumi Cryptos Capital on September 1, with plans to expand DeFi cover capital starting from XRP.