Firelight Protocol Phase 2 moves the protocol from liquidity bootstrapping into the full live protocol. Phase 1 built the base of staked capital. Phase 2 activates three changes at once: capital migrates automatically into active positions, streamed emissions and slashing exposure go live, and the unstaking window extends to align with cover periods. Together, these changes turn staked FXRP into the backing capital for the cover DeFi vaults, with the first launch partners to be announced soon.

The Firelight Risk Consortium brings an entirely new approach to how DeFi addresses risk events and claim validation. Its success depends on bringing together strong expertise across risk management areas. While threat detection platforms identify incidents and exploits , insurance underwriters and brokers understand how these exploits translate into coverage and whether a loss qualifies under those terms. That's where Native's participation is essential.

Hypernative's role within the Firelight Risk Consortium is an integral one, bringing industry-leading threat intelligence and security monitoring capabilities to help deliver transparent, objective, and technically rigorous claims assessments.

Firelight launches risk consortium with GFX Labs, Hypernative, Credora, Native, and Cyfrin to provide a transparent neutral review process for onchain cover events.

DeFi has solved for capital formation, liquidity access, and permissionless execution. Protection remains unsolved.

Firelight Protocol is partnering with Lombard, the protocol behind LBTC, BTC.b, and Bitcoin Smart Accounts, to explore how Bitcoin could be used within DeFi coverage markets. The collaboration is currently focused on two potential paths: covered Bitcoin Smart Account DeFi vaults for Lombard users, and a Bitcoin-backed coverage vault on the Firelight side where deposited BTC could serve as collateral backing coverage capacity.

Why a senior tranche position is not insurance, and what cover actually addresses.

The decentralized finance ecosystem has matured significantly, but its approach to security remains incomplete. For years, smart contract audits have been treated as the primary signal of safety. A completed audit often serves as a launch milestone, a trust badge, and in many cases, a perceived endpoint for risk mitigation; that framing is no longer sufficient.

Firelight Protocol is proud to announce its integration with Sentora, the leading institutional DeFi risk curator, to provide native DeFi cover for Sentora’s public and private vaults.