Firelight Raises $8 Million to Extend DeFi Protection Beyond XRP

Firelight has raised $8 million as it expands its DeFi protection protocol beyond XRP. The project is designed to help fintech companies and investors recover losses more quickly after decentralized-finance hacks, according to CoinDesk. Firelight also seeks to make DeFi more approachable for fintechs by allowing holders of XRP, bitcoin and XLM to earn yield while providing capital that backs the protection. The expansion places XRP, BTC and Stellar’s XLM among the digital assets connected to Firelight’s protection model. The company’s fundraising and broader asset coverage come as it targets a simpler way for traditional financial technology businesses and investors to participate in DeFi without taking on the full burden of potential hack-related losses. Firelight’s model links yield opportunities for token holders with a mechanism intended to support recovery following DeFi security incidents.