Firelight Protocol raised $8 million to provide DeFi exploit protection for fintechs moving yield products on-chain. The protocol expands backing collateral from XRP to Bitcoin and Stellar's XLM, with a 10-day claims settlement model designed for institutional adoption.
DeFi insurance protocol Firelight closed an $8M funding round led by Gumi Cryptos Capital to provide exploit protection for mainstream financial firms adopting on-chain yield strategies. The protocol allows fintechs, neobanks, and payments companies to hedge smart-contract risk through an NFT-based cover mechanism backed by collateral. Firelight is expanding beyond XRP to include Bitcoin and Stellar's XLM, tapping into a market where $80B is locked in DeFi but less than 1% has insurance protection. The protocol's differentiator is speed: a consortium of independent risk firms evaluates claims and settles losses in under 10 days, addressing a critical gap for companies that cannot wait months for traditional insurance payouts.