Firelight raises $8 million, expands beyond XRP as it aims to make DeFi less scary for fintechs
DeFi infrastructure firm Firelight has raised $8 million to provide insurance-like coverage for smart-contract exploits. The company aims to make decentralized finance safer for fintechs and institutional investors by offering a faster claims process.
Why it matters
This funding reflects the growing institutional effort to mitigate risks in the DeFi sector to encourage broader mainstream adoption.
The investment round was led by Gumi Cryptos Capital, with Maven 11, Metalayer, Joint Effects and Tribe Capital also participating, the firm said. Firelight , which was incubated by Sentora, a DeFi infrastructure provider with $2.4 billion in assets held in its vaults, plans to launch the protocol and its first cover integrations in September.
The project is tackling a problem that has become more pressing as fintechs and other mainstream financial firms experiment with onchain yield: DeFi can offer attractive returns, but a single smart-contract exploit can wipe out customer funds, while traditional insurance can take months to pay. Firelight is trying to bridge that gap with dedicated cover capital and a claims process designed to settle eligible losses in about 10 days.
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