Firelight raises $8 million, expands beyond XRP as it aims to make DeFi less scary for fintechsFirelight Protocol raised $8 million to build an onchain protection layer for DeFi with plans to expand the assets backing its cover system beyond XRP to BTC and Stellar's XLM. Firelight, which was incubated by Sentora, plans to launch the protocol and its first cover integrations in September.
The project is tackling a problem that has become more pressing as fintechs and other mainstream financial firms experiment with onchain yield: DeFi can offer attractive returns, but a single smart-contract exploit can wipe out customer funds, while traditional insurance can take months to pay. Firelight is trying to bridge that gap with dedicated cover capital and a claims process designed to settle eligible losses in about 10 days.“This isn’t built for degens,” — he said. “This is built to bring the next wave of capital in. We want to be that protection layer to allow that adoption.”
DeMartino said he expects more money currently sitting in bank accounts to migrate into fintech earn products powered by stablecoins, onchain vaults and wallets.
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