Firelight Protocol Secures $8M for Expanded DeFi Protection

Firelight Protocol has secured $8 million in funding to expand its DeFi protection layer beyond XRP. The company plans to include Bitcoin (BTC), Stellar (XLM) and other liquid crypto assets in its collateral system.

The funding round was led by Gumi Cryptos Capital, with participation from Maven 11, Metalayer, Joint Effects and Tribe Capital. Firelight is incubated by DeFi infrastructure provider Sentora.

According to the CEO, Anthony DeMartino, Firelight aims to address one of DeFi's biggest barriers to adoption: losses caused by smart-contract exploits. Over $9 billion has been stolen through DeFi protocol attacks over the years.

The company plans to launch its protocol and initial cover integrations in September. Firelight will combine dedicated cover capital with a faster claims process, targeting payouts within 10 days.