Firelight Protocol and Sentora said on Thursday that they will add native DeFi cover to XRP-linked vaults on Flare this quarter.
The product will provide capital-backed protection for public and private vaults that use FXRP, Flare’s non-custodial version of XRP. The companies said the cover will protect against smart contract exploits, oracle failures, and other onchain risks.
Sentora, which runs curated DeFi strategies and works with platforms such as Kraken and Fireblocks, said the integration is meant to make onchain protection part of the vault structure.
Firelight and Sentora add cover to XRP DeFi vaults
Firelight said the integration will be rolled out across Sentora’s vault products during the current quarter. According to the company, the aim is to give institutions and other users access to a built-in protection layer instead of leaving cover outside the product.
Sentora said the partnership responds to a clear need in DeFi. Firms may have access to risk tools, but many still want direct cover tied to how capital is deployed. The companies said this setup is meant to close that gap for vault users on Flare.
“What we hear consistently from institutional allocators and retail platforms is that an onchain cover primitive is needed for DeFi to reach broader adoption,” Sentora Chief Executive Anthony DeMartino noted. “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.”
FXRP sits at the center of the structure
The product will run on Flare and use FXRP as the reserve asset behind the cover. Firelight said FXRP is a 1:1, non-custodial, DeFi-ready version of XRP. That allows XRP to be used as collateral inside a cover product without moving away from the asset’s original value.
Firelight said the reserve pool is designed to remain separate from the protocols it protects. The company said that matters because a reserve asset should not move in line with the same platform risks it is meant to cover. The structure is intended to improve how reserves hold up during stress events.
The company also said the product uses programmatic underwriting. Sentora’s risk stack monitors more than 1,000 risk models in real time, which Firelight said will help price the cover and assess protocol health as conditions change.
Claims will go through an independent consortium, according to the companies. They said this is meant to reduce delays and uncertainty that users often face with older onchain cover models.
Partnership targets institutional DeFi demand
Firelight said the new product is built for a market where more institutions are moving onchain but still face security concerns. Smart contract failures, oracle issues, and sudden economic shocks remain among the main risks in DeFi. The companies said native cover can help reduce those concerns.
Sentora said users of its vault ecosystem will gain direct access to protection against these risks without leaving the vault setup. The model is meant to support firms that want stronger safeguards before deploying capital into onchain strategies.
Firelight also said it plans to start with XRP and expand to other digital assets later. That would allow it to widen the set of assets used across future protection pools.
“Firelight and Sentora represent exactly what we’ve been building toward at Flare, which is institutional-grade infrastructure that puts XRP to work in ways that weren’t possible before,” noted Flare co-founder and Chief Executive Hugo Philion.
Flare’s total value locked has risen by nearly 38 percent since FXRP launched, giving XRP holders more room to use wrapped XRP in lending, liquidity, and other onchain strategies beyond the XRP Ledger itself.
XRP price slips as market watches new use case
The partnership was announced as XRP traded lower on Thursday. XRP changed hands at about $1.43 at press time, with 24-hour trading volume above $2.2 billion. The token was down about 1 percent on the day but up nearly 2 percent over the past seven days.
During the session, XRP tested the $1.44 level before moving lower toward $1.42. The move failed to hold above resistance, and sellers pushed the token down to an intraday low of $1.41. At that price, XRP remained about 40 percent below its year-to-date high of $2.36.
Part of the pressure also came from a separate XRP-related market update. GraniteShares delayed the launch of its planned 3x leveraged crypto ETFs to May 7, including XRP products. The delay removed a near-term event that some traders had been watching.