Firelight Secures $8 Million Investment and Plans Compensation System Launch Within 10 Days

Firelight, a protocol that compensates victims of decentralized finance (DeFi) hacks, has secured an investment of $8 million. The system aims to quickly compensate losses from smart contract hacks, lowering the entry barriers for fintech and financial companies into the on-chain market. Firelight raised funds in an investment round led by Gumi Cryptos Capital, with participation from Maven11, MetaLayer, Joint Effects, and Tribe Capital. Currently supported by Centora, which has approximately $2.4 billion in assets deposited, Firelight plans to launch its protocol and first compensation service this month. The total value of virtual assets stolen through DeFi hacks has exceeded $9 billion, and traditional insurance can take months to pay out after an incident. Firelight plans to complete compensation for eligible victims within about 10 days through dedicated compensation capital and an on-chain claims system. In addition to XRP, Bitcoin and Stellar Lumens will also be included as compensation resources. Firelight targets not only DeFi-focused investors but also fintech companies, neobanks, and payment providers as key clients. Incident assessments will be completed within 3 to 4 days, and the entire process will be finalized within 10 days.

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