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

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.

The Resolv exploit exposed a deeper flaw in DeFi: risk doesn’t stop at the point of failure—it propagates through the entire system. As collateral breaks, oracles lag, and bad debt accumulates, the absence of continuous risk pricing becomes impossible to ignore. This piece explores why DeFi needs to move beyond static audits and start underwriting risk at its source.

We’ve increased the deposit cap on Firelight Protocol to 65 million FXRP, following significant demand from the community after our Phase 1 launch. This cap increase enables participants to deploy FXRP and stake on Firelight.

We’re launching the Firelight Boost Month, a temporary point multiplier that kicks in automatically for anyone participating in eligible protocols.

Institutions are quietly using DeFi behind familiar fintech interfaces (“DeFi Mullet”), but traditional insurance can’t handle its fast, complex risks. A new, embedded, real-time protection model is needed—this is the gap Firelight aims to fill.