Firelight Protocol, a decentralized protection layer for digital assets, has partnered with institutional DeFi intelligence and risk management platform Sentora to provide native coverage for Sentora’s public and private vaults, according to details shared with Finbold on April 23.
The integration adds a capital-backed protection layer to Sentora’s vault infrastructure, aiming to support institutional participation on the platform, which already manages billions of dollars in deployed capital.
Sentora operates as an institutional DeFi intelligence and risk management platform, with its infrastructure integrated into major digital asset venues, including Kraken and Fireblocks.
Under the partnership, Firelight will act as the native cover protocol for Sentora’s vaults, embedding protection directly into capital deployment workflows.
Embedded coverage targets structural DeFi risks
Vault participants will gain access to coverage against risks such as smart contract exploits, oracle failures, and bad debt, addressing a long-standing barrier to broader institutional adoption of DeFi.
“What we hear consistently from institutional allocators and retail platforms is that an onchain cover primitive is needed for DeFi to reach broader adoption,” said Anthony DeMartino, CEO of Sentora. “Even with leading risk models, many participants want more than risk mitigation alone. They want a clear, capital-backed protection layer that can be integrated directly into how capital is deployed onchain. This partnership with Firelight helps bring that missing layer to market.”
The collaboration is designed to standardize protection as a core component of DeFi infrastructure by integrating coverage directly into vault architecture rather than treating it as a standalone product.
Firelight is built on the Flare Network and uses FXRP, a non-custodial 1:1 representation of XRP, as its primary collateral mechanism. According to the release, this design provides a diversified and uncorrelated reserve base while allowing XRP to be deployed as a yield-generating asset through coverage provision.
“Firelight and Sentora represent exactly what we’ve been building toward with Flare, which is institutional-grade infrastructure that puts XRP to work in ways that were not previously possible,” said Hugo Philion, co-founder of Flare. “This partnership demonstrates how DeFi at scale can be supported by robust collateral, transparent risk frameworks, and integrated protection mechanisms.”
Firelight’s architecture combines diversified collateral pools, programmatic underwriting powered by Sentora’s risk models, and automated claims processing. The companies said this approach is intended to improve capital efficiency while reducing friction in claims resolution.
By embedding protection directly into capital allocation workflows, Firelight and Sentora aim to increase confidence in onchain financial infrastructure and support wider adoption across institutional and professional investor segments.
Featured image via Shutterstock.
