Firelight Protocol has partnered with Sentora to provide native coverage for Sentora’s public and private vaults, introducing institutional participation. The integration introduces a capital-backed protection layer across Sentora’s platform, which already manages billions in deployed capital.
Through this partnership, Firelight will serve as the cover protocol, providing native protection for Sentora’s vaults. Sentora has also established itself as a curator of institutional DeFi strategies, with infrastructure integrated into platforms such as Kraken and Fireblocks.
Meanwhile, participants across Sentora’s vault ecosystem will gain access to embedded protection against risks, including smart contract exploits, oracle failures, and bad debt. The company’s CEO, Anthony DeMartino, says institutional allocators and retail platforms currently need an on-chain cover primitive for DeFi to reach broader adoption.
DeMartino says many participants want more than just risk control
DeMartino says that even with leading risk models, many participants want more than just risk control. He notes that most of them prefer a clear, capital-backed protection layer that can be integrated directly into on-chain capital deployment. DeMartino believes the partnership with Firelight helps bring that missing layer to market, providing 1,000+ risk management models to model the risks insured by Firelight.
On the other hand, Firelight also stated that the partnership addresses a key structural gap in DeFi, where security risks have historically limited institutional adoption. The company and Sentora aim to standardize protection as a core component of DeFi capital deployment by embedding coverage directly into vault infrastructure. Sentora raised the deposit cap on Firelight to 65 million FXRP to meet demand.
According to the Firelight team, the protocol is built on the Flare Network and uses FXRP, a non-custodial 1:1 representation of XRP, as its primary collateral mechanism. The structure introduces a diversified, uncorrelated reserve base while enabling XRP to be deployed as a yield-bearing asset through coverage provision. Flare also serves as a strategic investor in Sentora, aligning the infrastructure and risk layers underpinning the partnership.
Flare co-founder claims partnership introduces new use cases for XRP
Hugo Philion, the co-founder of Flare, claims that the partnership introduces institutional-grade infrastructure that puts XRP to work in ways previously not possible. He also believes that the partnership demonstrates how DeFi at scale can be supported by robust collateral, a transparent risk framework, and integrated protection mechanisms. When a coverage event (e.g., a hack) is submitted, a dedicated consortium reviews it, and funds are programmatically released from the cover vaults upon approval.
The Firelight team also adds that the protocol’s architecture combines diversified collateral pools, programmatic underwriting powered by Sentora’s risk models, and automated claims processing. Together, these components are designed to reduce friction in claims resolution while maintaining transparency and capital efficiency.
The partnership further marks a step toward establishing a standardized protection layer for DeFi, particularly as institutional demand continues to grow. The collaboration is part of a broader push to make institutional DeFi safer, with Firelight focusing on “economically secured services” to guarantee the safety of capital deployed into DeFi protocols. Firelight joins hands with institutional DeFi intelligence and risk management platform, Sentora, to enhance confidence in on-chain financial infrastructure and support broader adoption.
