Firelight, a cover protocol for DeFi vaults using staked XRP on Flare, raised $8M from Gumi Crypto and plans first integrations this month.
DeFi & Yields ·
Firelight, a cover protocol built on the Flare network, closed an $8M funding round led by Gumi Cryptos. The protocol, which operates under the Sentora HQ incubator, is designed to protect decentralized finance vaults by leveraging staked XRP as collateral. The project has already accumulated $76M in XRP reserves and plans to launch its first vault integrations this month.
The market opportunity remains substantial; onchain protection currently covers only 0.1% of the broader DeFi ecosystem, indicating significant room for expansion. Firelight's approach targets the gap between users seeking loss recovery mechanisms and the limited availability of such safeguards across existing protocols.
Details about which specific vault operators will receive the initial integrations this month have not yet been disclosed. The scope of future expansion beyond the Flare and XRP ecosystem remains unclear from the available information.