Firelight Launches DeFi Insurance Backed by $115M in Staked XRP
DeFi protocol Firelight has introduced insurance coverage on the Flare network, utilizing 50.2 million staked XRP to protect against smart-contract and oracle risks.
Firelight, a DeFi cover protocol incubated by Sentora, has officially launched its insurance coverage platform on the Flare network. The protocol is backed by 50.2 million XRP, which are staked to provide security against risks such as oracle failures and smart-contract exploits.
The initiative sets an aggregate cap of $115 million for staked XRP positions. By utilizing XRP bridged as FXRP, Firelight is establishing an on-chain protection market on Flare, which includes coverage for vaults like Sentora’s USD Protected Vault.
This launch introduces a new utility for XRP within the DeFi space. The use of staked assets to back insurance coverage is intended to support the broader adoption of the token.
Market participants are expected to watch how this integration influences the utility of XRP. Observers are also tracking potential commentary from Ripple CEO Brad Garlinghouse and financial institutions such as BlackRock and Fidelity, alongside any regulatory actions from the U.S. SEC that could impact the asset.
