Veda provides vault infrastructure behind embedded Earn, letting protocols and risk curators deploy on-chain strategies and scale them across markets. Firelight is bringing a protection layer to that infrastructure.

Through this collaboration, Veda will be able to integrate Firelight protection directly into its vault infrastructure, giving vault operators a more efficient path to adding on-chain coverage to the capital they support.

Protection As a Core Component of On-chain Infrastructure

For organizations integrating vaults, protection has historically been limited, or has required complex configuration. This partnership addresses that by enabling coverage to be built into the vault itself.

Firelight's coverage is created as an on-chain protection primitive. The initial collateral deployed in the ecosystem is XRP. Claims are handled through Firelight's Risk Consortium, which comprises an independent panel of leading security and risk firms, namely Hypernative, Native, Credora, GFX Labs, and Cyfrin, that review cover events. The result is a more predictable and reliable protection system for on-chain capital and protection, enabled across eligible vaults on Veda.

Veda's infrastructure already supports nearly 300 integrations across DeFi, and has processed more than $32B in volume to date. This partnership establishes the infrastructure-level integration needed for Firelight protection to reach eligible vaults across Veda's ecosystem in the future.

As more vaults are deployed through Veda, this integration provides a repeatable path to extending coverage across new embedded Earn deployments.

As more major financial institutions and fintechs continue to offer onchain products to their clients, the appetite for additional protections, such as insurance from Firelight, are becoming a growing need.

Sun Raghupathi, Co-Founder and CEO of Veda.

Why This Matters for On-Chain Capital

As vaults become increasingly sophisticated, capital deployed through these systems also become exposed to on-chain risks such as protocol, smart contract, oracle, and others. The Veda partnership is an important step in Firelight's broader goal of making on-chain protection more accessible and composable. Firelight provides the basis to address those risks through on-chain coverage, connecting vaults that need protection with capital that backs it. By integrating at this layer, Firelight and Veda are making that protection easier to deploy at scale.

About Firelight

Firelight Protocol is a decentralized protection layer for digital assets. Built on the Flare Network and incubated by Sentora, Firelight enables a capital-backed market for DeFi cover, allowing protocols to purchase protection while stakers earn fees for securing the ecosystem. 

About Veda

Veda is the leading vault infrastructure provider, powering yield-generating products for businesses across fintech and beyond. By abstracting the complexities of DeFi, Veda allows enterprises to offer seamless earn products to their users. Veda has powered more than $32 billion in deposits for more than 300k depositors and is trusted by Kraken, EtherFi, and other clients to power integrated earn solutions that outperform alternatives.

To learn more, visit veda.tech