The Protection Layer for Digital Assets. Incubated by @sentoraHQ Official Discord Server: https://teapawt.net/t.co/JG45Dw5xN7
Joined February 2025
- Tweets3.6K
- Following69
- Followers17.4K
- Likes4.3K
Pinned Tweet
Firelight is bringing onchain cover to @LidoFinance Earn, protecting Lido's EarnETH and EarnUSD vaults against onchain risks.
Terms and capacity are onchain and are reassessed every 30 days against each vault’s risk.
→ app.firelight.finance/
Firelight is incubated by @SentoraHQ, a market leader in institutional DeFi.
Sentora brings extensive experience in digital asset risk management, curating over 1,000 risk management models.
Learn more.
sentora.com/
Firelight provides coverage for economic and technical failures. Technical risks pertain to smart contract code, oracle infrastructure, and governance mechanisms.
Economic risks stem from protocol mechanisms failing under stress, rather than from normal market conditions. 🔽
DeFi is a multi-billion-dollar industry running on minimal coverage.
@jrdothoughts joins @paulbarrontv to explain why native risk transfer is DeFi’s missing primitive, and how Firelight is building it at scale.
Catch the full conversation. youtube.com/watch?v=Oy2xrYww…
Firelight retweeted
Firelight expanding into cover for Lido Earn vaults is worth watching.
Staked FXRP helping back protection for people outside the XRP crowd. As a long-time holder, that's the kind of practical use I like seeing.
Firelight brings a first layer of protection on @LidoFinance’s EarnETH and EarnUSD, ahead of Lido DAO’s own protection.
It absorbs eligible losses of up to 5.7% of EarnETH’s TVL and 8% of EarnUSD’s this period.
Join our livestream with Lido at 14:30 UTC today to learn more.
Lido Earn’s Vaults Add Onchain Cover From Firelight teapawt.net/i/broadcasts/2MEXNEmAV…
Firelight retweeted
You can just make things safer. Hardened due diligence, first loss protection, and now coverage by
@Firelightfi
Lido Earn: Depositors Protection Extended 🛡️
EarnETH and EarnUSD now have two layers of loss protection: @Firelightfi first, followed by the Lido DAO’s loss protection.
No action needed from depositors: protection applies at the vault level.
Here’s how it works:
Firelight retweeted
Fam this is crazy important for the future of DeFi and entities like @FlareNetworks @SentoraHQ @Firelightfi. The future of finance is not just on-chain. It's DeFi.
Today, @veda_labs, @aave, and @kamino are publishing a new legal framework for applying U.S. securities laws to decentralized lending protocols and non-custodial vaults. It draws from a joint submission to the @SECGov last month. Here's why it matters for the future of onchain finance: 🧵
Firelight retweeted
LATEST: @FlareNetworks is bringing additional onchain protection to @krakenfx Protected Strategies USDC vault through Firelight, with coverage backed by XRP staked on the Flare network.
The development adds a new layer of risk protection to Kraken’s yield-generating product. Since launching in January, Kraken’s vaults have reportedly attracted more than $800 million in deposits.
The integration highlights growing collaboration between DeFi protocols and centralized platforms to expand onchain protection and yield opportunities.
Firelight retweeted
Firelight stXRP: 1.02% organic, 1.97% incentive. The organic third is new and real. Watch what TVL does when the incentive part shrinks.
Firelight retweeted
Lido Earn added Firelight loss protection to its vaults. Depositors are covered at vault level, but payouts depend on eligible losses, approval and available capital.
defiprime.com/lido-earn-fire…
Firelight retweeted
NEW: @LidoFinance introduces two layers of loss protection for Lido Earn vaults (EarnETH and EarnUSD), now live for all depositors.
• Firelight: Covers eligible smart contract, oracle, and governance exploits, with initial 30-day limits of ~5.7% of EarnETH TVL and 8% of EarnUSD TVL.
• Lido DAO: Provides additional protection through its $3M EarnETH and $2M EarnUSD vault positions.
At $50M EarnUSD TVL, the two layers could absorb up to ~$6.1M in eligible losses.
No action required from depositors.
Lido Earn: Depositors Protection Extended 🛡️
EarnETH and EarnUSD now have two layers of loss protection: @Firelightfi first, followed by the Lido DAO’s loss protection.
No action needed from depositors: protection applies at the vault level.
Here’s how it works:
Firelight retweeted
every time a defi protocol gets hacked, the same question shows up in the replies. who pays.
most of the time the answer is nobody. the money is just gone.
@Firelightfi is building cover for that moment. platforms buy protection for 30 days at a time and pay upfront. the capital behind that cover comes from staked XRP, an asset that does not move closely with defi.
if a covered event happens, an independent group of security and risk firms checks the claim onchain.
they say they now have $55.9M in total coverage capacity. firelight raised an $8M seed led by gumi cryptos with maven 11 and tribe capital, incubated by sentora.
defi will not get big money in until losses stop being final.
x.com/Firelightfi
firelight.finance
Firelight retweeted
Lido has added Firelight loss-protection parameters to its Earn vaults.
First-period protection limits are set at $12.1M for EarnETH and $4M for EarnUSD. The parameters supplement the DAO's existing share-burn insurance buffer.
Earn vaults route staking liquidity into curated yield and restaking strategies. Any slashing event or strategy shortfall triggers the protection framework automatically.
Stakers want higher yields until an underlying protocol experiences bad debt.
Lido is building private deposit insurance because institutional allocators demand it.
Firelight retweeted
Kraken's Protected Strategies USDC vault now carries onchain cover from Firelight, backed by XRP staked on Flare.
Kraken vaults have drawn more than $800 million in deposits since launching in January.
@FlareNetworks
Firelight retweeted
JUST IN: $XRP-backed cover in DeFi has climbed to $38 million.
Firelight Protocol now backs three $USDC vaults run by @krakenfx and Sentora with staked FXRP from Flare.
What it covers ⬇️
Read here: bsc.news/news/firelight-xrp-…
Firelight retweeted
Lido Earn: Depositors Protection Extended 🛡️
EarnETH and EarnUSD now have two layers of loss protection: @Firelightfi first, followed by the Lido DAO’s loss protection.
No action needed from depositors: protection applies at the vault level.
Here’s how it works:
Firelight retweeted
🛡️ An update worth knowing if you use our public stVault!
EarnETH, the DeFi strategy behind it, now has an additional loss-protection layer from @Firelightfi.
It sits alongside @LidoFinance DAO-funded protection. Here’s what that means for the strategy 👇
Lido Earn: Depositors Protection Extended 🛡️
EarnETH and EarnUSD now have two layers of loss protection: @Firelightfi first, followed by the Lido DAO’s loss protection.
No action needed from depositors: protection applies at the vault level.
Here’s how it works:
Firelight retweeted
Lido Earn integrated Firelight to provide automatic onchain loss cover across 250 million dollars in assets. Firelight acts as the first buffer ahead of the five million dollar Lido DAO backstop for protocol exploits. Native vault protection is setting a new standard in DeFi.
Firelight retweeted
DeFi spent years competing on APY.
Now I'm starting to pay more attention to something else: what happens when a strategy fails?
@LidoFinance just added a second layer of loss protection to its EarnETH and EarnUSD vaults through @Firelightfi.
Here's how it works:
• Firelight absorbs eligible, approved losses first.
• Lido DAO provides an additional layer of protection.
• Depositors don't need to purchase separate coverage.
The protection targets defined risks, including certain smart contract and oracle failures.
What interests me isn't simply the partnership.
It's the shift in how DeFi products are being designed.
For a long time, users were expected to understand smart contract risk, liquidity risk, and every protocol behind a yield strategy.
That's a lot to ask from someone who just wants to put their assets to work.
But protection isn't the same as a guarantee.
Coverage has limits, exclusions and conditions.
My take:
The next stage of DeFi won't be won by whoever advertises the highest yield.
It may be won by whoever makes risk easier to understand, manage and absorb.
High APY attracts attention.
Better risk management builds confidence.
Would you accept a lower yield in exchange for stronger protection?
