Firelight Protocol currently provides protection for around $38 million held in three DeFi vaults operating on Flare Network. The coverage uses staked FXRP as backing and compensates users in USDC if specific events occur, including smart contract exploits, oracle failures, or redemption problems. Coverage operates in 30-day cycles.
The protected vaults include one managed by Kraken and two operated by Sentora. An independent Risk Consortium evaluates whether incidents qualify for payouts. Individual depositors can receive up to $100,000 per address during each coverage period. The staked capital is pooled, meaning losses from any covered vault affect all stakers proportionally.
Read the full story on BSC News: Firelight Protocol Extends XRP-Backed Cover to $38 Million Across Three DEFI Vaults
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