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Crypto DeFi

Firelight Starts DeFi Cover Backed by 50.2M Staked XRP on Flare

Firelight has begun writing DeFi cover, with its first positions placed on two Sentora vaults and payouts backed by 50.2 million XRP staked on Flare. Claims will be decided by a five-firm consortium on a three-of-five vote. Audits of the coverage contracts are listed as coming soon.

Original source

AI take

The notable design choice here is the pairing of on-chain staked collateral with a small, named claims consortium, which trades the usual token-vote governance for something closer to traditional insurance committee review — faster, but concentrated. That matters most for XRP holders seeking yield on Flare, since the same staked XRP underpinning payouts is also the economic layer under the coverage. The open questions are whether a three-of-five vote proves credible under a contested claim, and whether the pending audits land before meaningful capital is at risk.

Generated by AI for reference only.

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