Sentora raises Firelight deposit cap to 65 million FXRP

Following strong community demand after the Phase 1 launch, the deposit cap on the Firelight Protocol was raised to 65 million FXRP. The move opens broader access for participants looking to deploy FXRP and stake within the protocol.

What is Firelight?

Firelight is the protection layer for digital assets, built and incubated by Sentora, a market leader in institutional DeFi with over 1,000 risk management models and billions deployed into DeFi strategies. The protocol positions itself as DeFi’s economic security engine: staked digital assets become protection for the broader ecosystem, with builders purchasing transparent cover and stakers earning fees for backing it.

Firelight establishes an onchain market for DeFi cover. XRP, which holds a rare distinction as one of the largest crypto assets by market cap without native onchain reward mechanisms, sits at the centre of the design. The protocol is built to unlock that latent potential by putting idle XRP to work across a structured coverage framework.

Coverage through Firelight addresses a defined set of DeFi risks: smart contract exploits, reentrancy failures, oracle manipulation, governance attacks, and bad debt. The mechanism is four-step:

• Assets are staked through a DeFi cover staking layer into non-custodial cover vaults.

• Coverage frameworks are registered onchain, allowing third parties to purchase coverage through an agent.

• Stakers earn their share of fees from cover buyers through automated cover contracts.

• When a coverage event is submitted, an independent consortium reviews it and funds are programmatically dispersed on approval.

Depositing FXRP into the Firelight launch vault issues participants stXRP: a liquid, ERC-20 compliant token fully backed by and redeemable for the underlying FXRP. That receipt token is composable across Flare Networks DeFi ecosystem. It can be swapped on DEXs, used as collateral in lending protocols, or deployed into liquidity pools to earn additional incentives, stacking participation benefits on top of the base protocol allocation.

Built on Sentora’s risk infrastructure

Firelight’s design is inseparable from the infrastructure behind it. Sentora curates over 1,000 risk management models and has deployed billions into DeFi strategies across 300+ monitored positions, giving it one of the more comprehensive proprietary datasets on protocol-level risk in the space. That accumulated modelling infrastructure is what Firelight draws on to price and underwrite cover programmatically, rather than relying on community voting mechanisms or conservative flat-rate premiums that struggle to account for protocol-specific risk profiles.

“We have spent years stress-testing risk models across the ecosystem. Firelight leverages this proprietary dataset to do what others could not: create a capital-efficient, large-scale protocol capable of underwriting technical and economic risk.”

—  Jesus Rodriguez, Co-Founder and CPO, Sentora

Where most onchain cover protocols have had to price risk conservatively and uniformly due to limited underwriting data, Sentora’s track record provides Firelight with a structural advantage: the ability to underwrite at the protocol level, not just by asset class or risk category.

A new metric for DeFi: Total Value Covered

The current launch vault is building toward Firelight’s DeFi Cover engine, set to go live in Q2. With it comes a new metric Sentora is introducing to the space: Total Value Covered (TVC).

TVL, or Total Value Locked, became the defining benchmark of DeFi largely through platforms like DefiLlama, turning it into the industry’s default measure of ecosystem health. TVL answers one question: how much capital is in the system. It has never answered how much of that capital is protected.

TVC is built to fill that gap. Where TVL measures deposited capital, TVC measures defended capital: the value protected by programmatic cover against smart contract failures, oracle issues, bridge exploits, and other economic vulnerabilities.

A protocol with $500M in TVL and no coverage framework carries the same number as one with an equivalent deposit volume and a verified security backstop. TVL treats those as identical. TVC does not. Sentora is positioning it as the more meaningful signal for users, protocols, and institutions evaluating which onchain systems are actually built to scale safely

Where Firelight fits in with DeFi insurance

Onchain cover is not a new category. Nexus Mutual, one of the longest-running protocols in the onchain insurance market, has protected over $6 billion in crypto assets since 2019 and processed tens of millions in claims across smart contract exploits and exchange hacks. Sherlock took a hybrid approach, pairing audits with staking-backed coverage pools. Neptune Mutual went further with parametric models, automating payouts when predefined conditions are met rather than relying on governance votes.

The structural challenge across much of this cohort has been consistent: capital fragmentation and limited scalability. Cover pools were often isolated by protocol or risk type, constraining how much coverage capacity could be deployed and at what price. Community-based claims assessment introduced slowdowns and subjectivity. And most models priced risk conservatively and uniformly rather than using protocol-specific underwriting data.

Firelight’s differentiation sits at the underwriting layer. Drawing on Sentora’s risk modelling infrastructure and a dataset built from monitoring billions in deployed capital, it can price cover at the protocol level. The cover marketplace model also separates the roles of staker and cover buyer more cleanly than mutual structures, allowing both sides to scale without one constraining the other.

With DeFi TVL, as tracked by DefiLlama, sitting once again above $100B, the gap between total deposited value and total covered value remains wide. Firelight is entering at the infrastructure layer, positioning TVC as the benchmark that starts to close it.

Security infrastructure

Firelight has completed two independent audits, one by OpenZeppelin and one by Coinspect, alongside a bug bounty program backed by Immunefi. The FAssets bridge, which creates representations of non-smart-contract-network assets like XRP on Flare Network, has been comprehensively audited and is fully overcollateralised and decentralised.

Cap 2: What to know

With the deposit cap now at 65 million FXRP, participants in Cap 2 are eligible to earn Firelight Points by deploying FXRP into the launch vault. Waitlist members retain their automatic 1.1x point multiplier. This phase continues building liquidity ahead of Phase 2, which will introduce programmatic DeFi Cover for leading protocols and support for multiple assets.

Firelight Boost Month adds a temporary point multiplier for participants in eligible protocols until April 6 at 5PM CET. Current multipliers are as follows:

Firelight is currently live on Flare Network. Cap 2 is open until the 65 million FXRP limit is reached.

For a step-by-step guide to staking on Firelight, see this blog post.

To learn more about Firelight, visit firelight.finance.