Firelight Is Live, Backed by Staked FXRP on Flare
Dubai, UAE, October 6th, 2026, Chainwire
Firelight Protocol launches on Flare, providing onchain cover for DeFi vaults and enabling XRP holders to supply cover capital through Flare Smart Accounts.
Firelight Protocol is now live on the Flare Network, with its first cover protecting Sentora’s USD Protected Vault and Protected RWA Vaults. Sentora incubated Firelight, while Sentinel Labs develops and maintains the protocol.
Firelight provides an onchain cover layer for DeFi vaults, with cover terms, pricing, capacity and eligible events registered transparently onchain. The protocol is designed to address a growing gap between the amount of capital deployed across decentralized finance and the capital available to protect it.
Addressing the DeFi Protection Gap
Onchain capital increasingly sits in vaults, while protection for that capital has not grown at the same rate. Capital backing onchain cover currently represents approximately 0.14% of the nearly $100 billion deployed across DeFi.
As institutional participation in DeFi grows, this protection gap becomes increasingly significant.
Firelight adds protection at the vault level, allowing depositors in covered vaults to receive protection without researching or purchasing a separate policy. Cover terms are registered onchain, while an independent Risk Consortium comprising Hypernative, Native, Credora, Cyfrin and GFX Labs evaluates each event against criteria published in advance.
Firelight Cover Is Live Across Two Sentora Products
Firelight cover is currently integrated into two Sentora products:
- Sentora USD Protected Vault provides diversified access to USD-denominated strategies that operate fully onchain across established DeFi protocols.
- Sentora Protected RWA Vaults run strategies built around real-world assets (RWAs), including leveraged looping and lending in markets that accept RWAs as collateral.
The underlying strategies remain unchanged. Firelight adds verifiable onchain protection against defined protocol failures affecting deposits in the covered vaults.
Veda and Upshift are also integrating Firelight at the infrastructure layer, enabling operators building on their infrastructure to activate protection for their own vaults while drawing on the same Firelight Vault.
The Capital Behind the Cover Starts on Flare
Firelight distributes the role traditionally performed by an insurer across stakers. Stakers deposit FXRP into the Firelight Vault, which sits outside the protocols it covers, with the vault’s capital backing the portfolio of elected cover.
XRP is the first asset supporting the Firelight Vault. Through FAssets, part of Flare’s core network infrastructure, XRP can become programmable on Flare as FXRP without relying on a third-party bridge.
The aggregate deposit cap for staked positions is currently $115 million in XRP. Flarebrings the underlying asset, the infrastructure supporting it and the DeFi cover layer together on a single network.
How Firelight Cover Works
Firelight registers the parameters, scope, price and capacity of each cover onchain. Covered technical and economic events are defined in advance and include:
- Smart contract exploits
- Oracle failures
- Governance exploits
- Bad debt and depegs caused by mechanism failure
- Redemption failures
When an eligible exploit or other covered event is confirmed:
- Firelight programmatically identifies eligible active positions in a covered vault within the affected market.
- ZeroShadow, Firelight’s designated security partner, publishes an exploit report.
- The Risk Consortium independently validates the event, confirms the loss and publishes an onchain attestation.
The Risk Consortium reviews each cover event before a payout can be released, assessing the event against the published cover criteria and authorizing the outcome through a public onchain attestation.
Depositing XRP Through Flare Smart Accounts
Flare Smart Accounts allow XRP holders to deposit into Firelight using XRP in one flow. A supported XRPL wallet can be connected to Flare Smart Accounts to initiate the mint-and-deposit process.
The process does not require FLR, with fees charged in FXRP.
The flow consists of four steps:
- An XRPL wallet sends XRP on the XRP Ledger with the deposit instruction attached.
- Flare’s Data Connector verifies the transaction.
- FAssets mints FXRP 1:1 on Flare.
- The FXRP is staked into Firelight, and stXRP is credited to the Flare Smart Account.
The Smart Account is linked to the originating XRPL address, with control retained by that address.
Users initiate the unstaking process on the web application following the applicable unstaking period. As emissions accrue and cover is enabled, the unstaking window increases to align with the 30-day cover periods. Following the unstaking period, FXRP can be withdrawn and redeemed for XRP, with the XRP returned to the XRPL address that opened the position.
Flare Smart Accounts: fsa.flare.network
What Stakers Earn
Stakers provide economic security to the Firelight protocol, with their deposits subject to slashing. In return, stakers receive a share of protocol emissions.
Program operators pay fees to enable cover on their vaults, with those fees funding emissions. Emissions are linked to total protocol revenue and increase as additional operators enable cover.
Emissions are distributed continuously in FXRP. Fees paid in USDC are converted to FXRP and automatically added to each staker’s position, increasing its redemption value over time.
The first protocol emissions will also be distributed to early contributors in proportion to the Firelight Points earned by eligible addresses during the protocol’s development, growth and launch. Firelight will publish eligibility and claim details through its official channels in the coming days. Users should treat claim links from other sources as potential scams.
Understanding the Risks
Firelight Cover is not insurance. Staking into Firelight involves taking on risk in order to provide protection to depositors in covered vaults.
Key risks include:
- Staked capital is subject to slashing. Deposits back cover and do not themselves receive cover. Stakers receive protocol emissions for providing economic security.
- Rewards carry the same risk. Compounded rewards remain in the vault and are subject to slashing in the same manner as the original deposit.
- Exits take time. Deposits support 30-day cover periods, meaning unstaking and withdrawals take longer than during Phase 1. Phase 1 positions convert automatically.
- Capacity is capped. Aggregate staked positions are currently capped at $115 million in XRP.
- Smart contract risk remains. Depositing through Flare Smart Accounts relies on the FSA, FAssets and Firelight contracts. Audits and monitoring reduce, but do not eliminate, this risk.
Participants should review the Firelight documentation and understand the associated risks before depositing.
Built on Flare
Flare is the blockchain for data. Its enshrined protocols, the Flare Time Series Oracle and Flare Data Connector, enable digital assets that settle elsewhere, starting with XRP, to participate in onchain finance.
FXRP, the first FAsset, represents XRP 1:1 on Flare and has surpassed 150 million FXRP minted, with more than 90% deployed in onchain finance across seven networks. Firelight uses staked FXRP as the capital backing onchain cover against defined risks including exploits, oracle failures and bad debt.
Sentora’s risk infrastructure supports Firelight, applying more than 1,000 proprietary risk models across $2 billion in deployed assets and more than 300 monitored strategies.
Firelight’s contracts have been audited by OpenZeppelin, Coinspect and 0xMacro, and the protocol completed a public bug bounty through Immunefi.
Firelight raised $8 million in seed funding ahead of launch. Gumi Cryptos Capital led the round, with participation from Maven 11, Metalayer and Tribe Capital.
Get Started
DeFi cover across chains, capital that starts on Flare.
- Firelight documentation: docs.firelight.finance
- Stake through Flare Smart Accounts: fsa.flare.network
- How to stake XRP on Firelight using FSA: Watch the tutorial on YouTube
About Flare
Flare is the blockchain for data, an EVM-compatible Layer 1 where data and compute expand what capital can do. Its enshrined protocols, the Flare Time Series Oracle and the Flare Data Connector, give smart contracts verified prices and facts from other chains and the internet. Flare Confidential Compute, deployed first on Songbird, adds logic that cannot run in the open, returning signed results that contracts verify onchain and that are authorized by the same provider set. Through products including FAssets and Flare Smart Accounts, Flare enables assets such as XRP to take part in smart contract applications while remaining connected to their native networks.
For more information, visit flare.network.