Firelight, a protocol for onchain cover in DeFi, has integrated its protection layer into the Kraken Protected Strategies USDC vault. This vault, part of the Kraken DeFi Earn program, has surpassed $800 million in deposits since its launch in January.
The protection covers specific failure events, such as smart contract exploits, oracle issues, and redemption failures. Coverage terms are registered onchain and reset every 30-day epoch based on the vault's risk profile and composition.
Risk management is handled through continuous monitoring by Hypernative and Sentora. If a failure occurs, the Firelight Risk Consortium, consisting of five independent firms, verifies the event against published terms to determine payouts.
The integration utilizes Veda infrastructure, which is also used by Sentora to curate vaults for other platforms. Firelight’s own operations are supported by bonded XRP on the Flare Network, with security audits conducted by OpenZeppelin, Coinspect, and 0xMacro.
