Firelight Secures $8 Million to Protect DeFi With Staked XRP

Firelight has successfully closed an $8 million seed funding round led by Gumi Cryptos Capital. The project aims to provide insurance for DeFi vaults by using staked XRP as collateral. This move is designed to protect users against potential exploits or smart contract failures.

The first integrations for this new cover protocol are set to launch later this month. While onchain insurance remains a small niche in the broader market, Firelight hopes to change that by integrating directly with DeFi liquidity pools.

Investors are watching this space closely to see if the model attracts enough capital to be effective. If successful, this could provide a new way for XRP holders to earn yield while helping to secure the ecosystem against hacks and technical risks.