Liquid Staking Explained: From ETH to XRP with Firelight | Crypto 101
SponsoredWelcome back to Crypto 101, where we break down the core ideas shaping DeFi and Web3.
In this episode, we explore liquid staking, how it works, why it was created, and how it’s expanding beyond traditional proof-of-stake blockchains. We start with staking fundamentals, explain why locked capital became a problem, and show how liquid staking tokens (LSTs) unlock new utility across DeFi.
We then go deeper into how Flare and the Firelight Protocol are extending staking-like mechanics to assets that were never designed for staking, like XRP. Using Firelight, XRP holders can mint stXRP, a liquid token that enables idle XRP to back on-chain risk protection while remaining fully composable across DeFi.
In this video, you’ll learn:
- How staking works on proof-of-stake networks like Ethereum
- Why liquid staking tokens (LSTs) were created
- How ETH liquid staking works with protocols like Lido and Rocket Pool
- How Firelight enables XRP to participate in DeFi
- How stXRP is used for on-chain coverage and yield
- Key benefits and risks of liquid staking
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