Firelight Protocol started selling onchain cover for DeFi vaults on Tuesday, writing its first positions on two vaults run by Sentora, the institutional DeFi firm that incubated it.
Firelight settles claims without a token-holder vote. A five-firm consortium approves or denies each incident on a three-of-five vote, and validated losses are paid from a protocol-owned stablecoin reserve before any staker capital is touched. Nexus Mutual, the longest-running onchain cover provider, has claims decided by member assessors.
The Firelight vault holds 50.2 million FXRP, the Flare representation of $XRP, worth about $76.1 million as of Tuesday, DefiLlama data shows. Nexus Mutual's capital pool stands at about $115 million. Firelight's documentation sets a launch operating leverage band of 2.0 to 2.5 times available capital, and a Capital Adequacy Ratio target of 1.75 to 2.0.
