DeFi's Next Phase of Growth

Firelight, a decentralized protection layer for digital assets, has launched its protection protocol on Sentora's USD Protected Vault and Protected RWA Vaults, providing a transparent and scalable layer of protection for DeFi users. This move aims to address the lack of protection in DeFi vaults, which has led to significant losses in recent times. Firelight's protocol enables protection against defined technical and economic events, such as oracle manipulation and lending exploits, and is backed by independent firms and stakers.

The lack of protection in DeFi vaults has been a major concern, with Oracle attacks on lending protocols nearly tripling this year. Available protection over these activities has been left behind, with capital backing onchain cover amounts to just 0.14% of the $88.3 billion locked in DeFi. Firelight's protocol changes this by providing a capital-backed market for DeFi cover, registering coverage terms onchain, holding capital in non-custodial vaults, and validating every cover event through an independent Risk Consortium.

The protocol is built on Flare Network and is incubated by Sentora, one of the largest vault curators in DeFi. Veda and Upshift, both leading vault infrastructure providers, integrate Firelight at the infrastructure layer, allowing operators to elect protection enablement for their own vaults and depositors to inherit it. With this launch, Firelight aims to revolutionize the DeFi landscape and bring about a new era of growth and adoption.

The terms of the protection are public and programmatic, with the capital verified onchain and every exploit event validated by independent firms with no stake in the outcome. Firelight registers each cover market's terms onchain before cover is enabled, including scope, price and capacity, so what is protected is always visible in advance rather than argued over after a loss. Eligible events include smart contract exploits, oracle failures, governance exploits, bad debt and depegs from mechanism failure, and redemption failures.

When an incident occurs, ZeroShadow, Firelight's designated security partner, publishes an exploit report, and the Firelight Risk Consortium, an independent panel made up of Hypernative, Native, Credora, GFX Labs and Cyfrin, validates the occurrence of the event against published criteria and confirms the existence of loss before payouts follow. The capital behind the Protocol's programmatic cover engine is achieved by participants staking to the Protocol, earning a proportionate share of the Protocol's emissions, generated in part by the fees operators pay for the enabled cover.

Firelight is audited by OpenZeppelin and runs a public bug bounty through Immunefi. The protocol is built on Flare Network, whose FAssets infrastructure brings XRP onchain as the collateral backing cover. Firelight recently raised $8 million led by Gumi Cryptos Capital with participation from Tribe Capital and Maven 11.

About Firelight

Firelight is a decentralized protection layer for digital assets. Built on the Flare Network and incubated by Sentora, Firelight enables a capital-backed market for DeFi cover, registering coverage terms onchain, holding capital in non-custodial vaults and validating every cover event through an independent Risk Consortium. Protocols and vault operators purchase protection while stakers earn fees for backing it.

About Sentora

Sentora is an institutional DeFi platform combining strategy design, risk management and cover in one system, enabling capital to be deployed at scale across multiple strategies. With $2.8 billion in aggregate vault TVL across more than 300 strategies, Sentora is one of the largest vault curators in DeFi.