Nik Erzetic - Flare (PhD)☀️

EarnETH and EarnUSD depositors hold two layers of loss protection, active since November 5. Firelight cover absorbs eligible technical and economic losses first at the vault level. Learn more. 🔽

Using @FlareNetworks Smart Accounts to deploy into Firelight only requires XRP. 1. Connect a supported XRPL wallet. 2. Mint FXRP (Flare-wrapped XRP). 3. Mint and deposit into the Firelight vault. Get started. youtube.com/watch?v=n1QQ1Ugz…

❗️Important Notice: We have heard the community’s concerns about blocked and sanctioned wallet addresses. Here is how the protocol works today: The protocol screens wallets when funds are deployed to identify blacklisted or OFAC-sanctioned addresses. Under the current design, the protocol accepts funds and deploys them into the epoch, and screening continues throughout the period. If the wallet that deployed the funds was flagged at the time of deployment, or becomes flagged during the period, its funds remain in the protocol until the period ends but do not earn rewards. At the end of the period, the funds are returned and the wallet is blocked from accessing Firelight again. As a result, flagged wallets do not earn yield but still participate in the cover module for the remainder of that period. We understand why this concerns depositors, particularly those who may not have known their wallets were blacklisted. From their perspective, the protocol knowingly accepted their capital, put it at risk, and withheld rewards at the last hour. We are building a first-of-its-kind protocol in public, and we appreciate the community’s candid feedback. We recognize that this approach is not tenable and does not meet the goals we set out to achieve. In response, we will roll back the blacklisting process and unblock affected wallets in the next few days. Execution timing and steps to retrieve funds will be shared soon. Our commitment to security, KYC, and institutional standards has not changed, but we recognize these issues must be addressed more robustly without impacting users. Over the coming weeks, we will analyze the situation and develop a new plan that achieves the original goal without affecting the community. Any changes will be communicated well in advance, and we will gather community feedback before anything moves forward. @FlareNetworks will compensate wallets affected during Phase 1, as @HugoPhilion shared earlier today: teapawt.net/HugoPhilion/status/210… We welcome continued feedback and remain committed to listening, responding, and improving the protocol alongside our community.

Isolated markets and active monitoring might have have made DeFi failures smaller, but more chains and dependencies have made them more frequent. Major failures are no longer black swan events. Firelight, a protection layer for digital assets, goes live on Oct 6.