XAO DAO approved deployment of 80% of its XRP treasury into Firelight, a DeFi insurance and yield protocol, marking the first multichain DAO treasury strategy combining insurance with yield generation.
DeFi & Yields ·
XAO DAO has approved the allocation of 80% of its XRP holdings toward Firelight, a decentralized finance protocol offering insurance coverage and yield opportunities. The vote on proposal 66 was announced by co-founder Santiago Velez, who characterized the move as the first instance of a DAO channeling treasury capital into a multichain DeFi strategy that pairs insurance with yield generation. The deployment operates through Flare Smart Accounts, a technology developed to enable XRP holders to access DeFi applications while maintaining XRPL wallet signatures.
The treasury commitment forms part of a broader effort to generate returns for DAO members while simultaneously backing capital for DeFi protection mechanisms. Flare Smart Accounts establish the technical bridge between XRP and Firelight's vault, where participants mint and deposit FXRP tokens. The initiative underscores a shift toward practical use cases for XRP holdings beyond passive storage.
Simultaneously, XAO DAO has rolled out governance refinements aimed at increasing member participation in decision-making. Recent updates include expanded proposal management tools, discussion capabilities, language support, and searchable governance records. The DAO has also implemented wallet delegation and revised quorum mechanisms to address participation barriers from dormant accounts. Whether these changes sustain community engagement across the XRP Ledger ecosystem remains to be demonstrated through continued voting activity.