Flare-backed Firelight and Sentora partner to bring capital-backed protection to institutional DeFi vaults

Firelight's involvement offers a new security layer for DeFi, reflecting a growing need for comprehensive protection.

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Add us on Google by Vivian Nguyen Apr. 23, 2026

Sentora and Firelight Protocol have entered into a partnership to bring native, capital-backed coverage to Sentora’s institutional DeFi vault ecosystem, the companies announced Thursday.

The collaboration brings a capital-backed protection layer designed to support institutional engagement across Sentora’s ecosystem, which already oversees billions in deployed capital.

Sentora, a key curator of institutional DeFi strategies with integrations across platforms, will now utilize Firelight as the underlying cover protocol for its public and private vaults, offering protection against smart contract risks, oracle failures, and bad debt scenarios, according to the announcement.

According to Sentora CEO Anthony DeMartino, institutional allocators and retail platforms increasingly expect an onchain cover primitive to support broader DeFi adoption.

While risk modeling has improved, he noted that many participants still seek a direct, capital-backed protection layer embedded within capital deployment flows, which this partnership aims to provide.

“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,” DeMartino stated.

Built on Flare Network, Firelight uses FXRP as its primary collateral. Stakers lock up XRP-equivalent tokens to back an insurance pool that pays out for covered vault failures.

Following a cap increase in March, the protocol has now moved toward 65 million FXRP staked, with over 155 million FXRP tokens actively circulating across Flare’s DeFi protocols.

“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,” Hugo Philion, co-founder of Flare, said. “This partnership demonstrates how DeFi at scale can be supported by robust collateral, transparent risk frameworks, and integrated protection mechanisms.”

Sentora has managed more than $3 billion in historical DeFi deployments and has integrations with Kraken and Fireblocks.

Data from Sentora’s own accounts shows its Advanced Strategy Vault for Kraken DeFi Earn alone held over $110 million in deposits from roughly 30,000 participants, with $148 million total across related vaults. The company raised $25 million in a Series A round in May 2025.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.