Firelight Activates Onchain Cover in Sentora DeFi Vaults

With onchain yield becoming mainstream, Firelight now integrates protection directly into vaults, starting with Sentora's offerings.

Firelight, an onchain cover-enablement protocol for DeFi, announced today that its protection is live, initially on Sentora's USD Protected Vault and Protected RWA Vaults. Previously, each depositor typically had to research and obtain protection individually, undermining the vault's purpose of abstracting risk management and strategy complexity. Although a few vault-level solutions have appeared, in most cases the entity deciding on a claim is the same one that must pay it, and the capital for payouts is held in the same assets that could lose value in the event triggering the claim. Firelight decouples these two roles. Five independent firms verify each cover event against predefined criteria, and the capital backing the cover remains outside the protected protocols.

Onchain capital is increasingly flowing into vaults. Over the past year, curated vault assets increased by 39%, and users have deposited over $10 billion into Morpho in the last two years, with roughly $1 billion coming via exchanges and fintechs. Apollo, managing nearly $940 billion, has agreed to acquire up to 9% of Morpho's governance token supply. Yet the protection available for these activities has lagged. Oracle attacks on lending protocols have almost tripled this year, while the capital allocated to onchain cover represents only 0.14% of the $88.3 billion locked in DeFi.

“As more capital moves onchain, protection needs to be as transparent and scalable as the markets it supports,” said Connor Sullivan, Chief Strategy Officer at Firelight. “Firelight is built for that future. The terms are public and programmatic, the capital can be verified onchain and every exploit event is validated by independent firms with no stake in the outcome. We see this as the foundation for DeFi’s next phase of growth.” 

Firelight has activated protection on Sentora's USD Protected Vault and Protected RWA Vaults. Sentora, the largest vault curator in DeFi, holds $2.8 billion in aggregate vault TVL across over 300 strategies. The cover on these vaults guards against specified technical and economic events, including oracle manipulation — an attack type that has driven this year's increase in lending exploits — within predefined coverage limits.

Veda and Upshift, two major vault infrastructure providers, integrate Firelight at the infrastructure level, allowing operators building on their platforms to choose protection for their vaults, with depositors receiving it automatically.

“Until now, protection has been missing from the infrastructure behind DeFi earn products,” said Lucas Outumuro, VP of Institutional DeFi Sentora. “Yield alone is no longer enough. Users deserve an extra layer of protection. We believe this should be the industry standard, and we are proud to be leading the way.” 

Before cover is activated, Firelight records each cover market's terms onchain — including scope, price, and capacity — so what is protected is known in advance rather than disputed after a loss. Eligible events are specified and include smart contract exploits, oracle failures, governance exploits, bad debt, depegs due to mechanism failure, and redemption failures. When an incident occurs, ZeroShadow, Firelight's security partner, releases an exploit report, and the Firelight Risk Consortium — an independent panel comprising Hypernative, Native, Credora, GFX Labs, and Cyfrin — verifies that the event matches the published criteria and confirms a loss before payouts are made. The capital for the protocol's programmatic cover engine comes from participants staking to the protocol. Stakers receive a proportional share of the protocol's emissions, generated partly from fees paid by operators for the enabled cover.

Firelight has undergone an audit by OpenZeppelin and maintains a public bug bounty via Immunefi. The protocol operates on Flare Network, with its FAssets infrastructure bringing XRP onchain to serve as collateral for the cover, and is incubated by Sentora. Firelight recently secured $8 million in a round led by Gumi Cryptos Capital, with involvement from Tribe Capital and Maven 11.

About Firelight

Firelight serves as a decentralized protection layer for digital assets. Operating on Flare Network and incubated by Sentora, it facilitates a capital-backed market for DeFi cover, with coverage terms recorded onchain, capital held in non-custodial vaults, and every cover event validated by an independent Risk Consortium. Protocols and vault operators buy protection, while stakers earn fees by backing it.

About Sentora

Sentora is an institutional DeFi platform that integrates strategy design, risk management, and cover into a single system, allowing capital to be deployed at scale across DeFi markets. Established in 2025 from the merger of IntoTheBlock and Trident Digital, Sentora curates vaults for leading protocols and institutions, applying over 1,000 risk models across 300 monitored strategies.