Firelight raises $8M to expand DeFi coverage beyond XRP

Firelight Protocol, a decentralized coverage platform built on the Flare Network, has closed an $8 million seed round as it prepares to extend its risk protection services well beyond its original XRP-focused roots. The round was led by Gumi Cryptos Capital, with Maven 11, Metalayer, Joint Effects, and Tribe Capital also participating. From liquid staking to full coverage Firelight launched its first phase in December 2025, introducing liquid staking capabilities using FXRP, the wrapped version of XRP that lives on Flare’s FAssets ecosystem. Staked FXRP blew past $67 million, with demand so persistent that the team had to raise its caps multiple times. Phase 2 will layer active coverage mechanisms on top of the staking infrastructure. Users who stake collateral will effectively underwrite risks for other participants, earning yield in exchange for backing protection against smart-contract failures and slashing events. The coverage marketplace will operate entirely on-chain, meaning pricing and terms are transparent. An independent Risk Consortium, which includes GFX Labs and Credora among its members, will evaluate claims within 10 days. Beyond XRP: Bitcoin and Stellar in the pipel...