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Flare-Backed Firelight Brings Native Cover To Sentora DeFi Vault Network

TLDR

  • Firelight will provide capital-backed cover for Sentora public and private vaults.
  • The cover targets smart contract risks, oracle failures, and bad debt events.
  • Firelight is built on Flare and uses FXRP as its main collateral base.
  • Sentora has managed more than $3 billion in historical DeFi deployments.
  • Sentora has integrations with Kraken and Fireblocks across its vault ecosystem.

Firelight Protocol and Sentora have partnered to add capital-backed protection to institutional DeFi vaults. The move brings native cover to Sentora’s vault ecosystem and targets a key barrier for institutional users. Firelight, which is backed by Flare, will serve as the cover protocol for Sentora’s public and private vaults.

Firelight cover is added to Sentora vault infrastructure

Sentora oversees billions in deployed capital across its institutional DeFi strategies. With this partnership, Firelight’s coverage will sit inside Sentora’s vault structure. That setup is designed to support safer onchain capital deployment.

The protection will cover smart contract failures, oracle issues, and bad debt events. These risks have remained a concern for both institutions and platforms. As a result, cover products have gained more attention in DeFi.

Sentora said the new structure responds to demand from allocators and retail platforms. Many users want direct protection instead of risk analysis alone. This partnership aims to meet that need inside the vault flow.

Anthony DeMartino, CEO of Sentora, said, ”Even with leading risk models, many participants want more than risk mitigation alone.” He added, ”They want a clear, capital-backed protection layer that can be integrated directly into how capital is deployed onchain.”

Flare-backed Firelight uses FXRP to support claims coverage

Firelight is built on Flare Network and uses FXRP as its main collateral. Stakers lock XRP-linked tokens into a pool that backs covered losses. That pool is designed to pay claims when covered vault failures happen.

The model allows staked assets to support protocol risk while remaining productive onchain. Firelight said this structure adds a native protection layer for DeFi products. It also gives institutions a clearer framework around risk transfer.

Following a cap increase in March, Firelight moved toward 65 million FXRP staked. More than 155 million FXRP tokens are also active across Flare DeFi protocols. These figures show growing use of FXRP within the network.

Hugo Philion, co-founder of Flare, said, ”This partnership demonstrates how DeFi at scale can be supported by robust collateral, transparent risk frameworks, and integrated protection mechanisms.” His statement linked the deal to Flare’s broader infrastructure goals.

Sentora targets broader institutional DeFi participation

Sentora has managed more than $3 billion in historical DeFi deployments. The company also has integrations with Kraken and Fireblocks. Those links give it a strong role in institutional DeFi access.

Data shared by Sentora shows its Advanced Strategy Vault for Kraken DeFi Earn held over $110 million in deposits. The same data showed about $148 million across related vaults. Roughly 30,000 participants were tied to that product.

The company raised $25 million in a Series A round in May 2025. That funding came as institutions kept exploring onchain yield products. Yet many firms still wanted stronger safeguards before increasing exposure.

The Firelight partnership is meant to answer that demand with built-in coverage. By adding capital-backed protection to vaults, Sentora is trying to make institutional DeFi access more secure and more practical.

The post Flare-Backed Firelight Brings Native Cover To Sentora DeFi Vault Network appeared first on CoinCentral.

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