Firelight has launched its onchain cover-enablement protocol, integrating protection directly into DeFi vaults. The service is now active for Sentora’s USD Protected Vault and Protected RWA Vaults. Unlike traditional models where claim decisions and capital reserves are centralized, Firelight utilizes five independent firms to validate cover events, with capital held separately from the covered protocols.
The protocol addresses the growing need for security in DeFi, where oracle attacks have nearly tripled this year. Currently, onchain cover represents only 0.14% of the $88.3 billion locked in DeFi. Firelight’s infrastructure is integrated by providers Veda and Upshift, allowing vault operators to enable protection that depositors inherit automatically.
Firelight operates on the Flare Network, using XRP as collateral. The protocol recently secured $8 million in funding led by Gumi Cryptos Capital, with backing from Tribe Capital and Maven 11. Security measures include an audit by OpenZeppelin and a bug bounty program on Immunefi. The project was incubated by Sentora, which manages $2.8 billion in aggregate vault TVL.
When an incident occurs, security partner ZeroShadow publishes an exploit report. The Firelight Risk Consortium, including Hypernative, Native, Credora, GFX Labs, and Cyfrin, then validates the loss against pre-specified criteria. Stakers who provide the capital for the cover engine earn a share of emissions and fees paid by operators.
