Firelight Protocol Secures $8M to Expand Decentralized Coverage Beyond XRP
Firelight Protocol, a decentralized coverage platform built on Flare Network, has secured an $8 million seed round to expand its risk protection services beyond its original focus on XRP. The funding was led by Gumi Cryptos Capital, with Maven 11, Metalayer, Joint Effects, and Tribe Capital participating.
The protocol launched in December 2025 as the first phase of Firelight introduced liquid staking capabilities using FXRP, a wrapped version of XRP that exists on Flare's FAssets ecosystem. The staked FXRP surpassed $67 million, with demand leading to multiple cap increases.
In its next phase, Firelight will introduce active coverage mechanisms on top of the existing staking infrastructure. Users who stake collateral will effectively underwrite risks for other participants, earning yield in exchange for providing protection against smart-contract failures and slashing events.
The coverage marketplace will be entirely on-chain, with transparent pricing and terms. An independent Risk Consortium, including GFX Labs and Credora as members, will evaluate claims within 10 days.