Firelight Protocol Secures $8M to Expand DeFi Protection Beyond XRP
Fintech company Firelight Protocol secured $8 million in a funding round led by Gumi Cryptos Capital to develop an onchain DeFi protection layer. The protocol plans to expand its coverage beyond XRP to include Bitcoin and Stellar's XLM.
The launch is scheduled for September, with the goal of providing a claims process that settles eligible losses in under 10 days. This is significantly faster than traditional insurance policies, which can take months to resolve.
Firelight Protocol's model works by representing covered positions as NFTs, allowing holders to present them to a consortium of risk-specialized firms to determine whether the incident qualifies under the coverage terms.
The protocol aims to protect fintechs, neobanks, and payment companies that integrate onchain yield products into their applications. According to CEO Anthony DeMartino, the most common obstacle is not the technology but the possibility of an exploit draining client funds.