DeFi protocols currently face over $100 billion in uninsured exposure, with existing coverage accounting for approximately 0.1% of total risk. Firelight, incubated by Sentora and backed by Flare Networks, is developing a new insurance backstop mechanism to address this critical protection deficit.
The protocol utilizes staked XRP as collateral to provide decentralized coverage for the sector's massive uninsured liabilities. This initiative aims to establish foundational risk management infrastructure within the DeFi ecosystem by leveraging XRP liquidity to secure protocol-level guarantees.
Firelight Targets DeFi's $100B Insurance Gap With Staked XRP Backstop
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