Firelight Protocol, a decentralized coverage platform built on the Flare Network, has closed an $8 million seed round led by Gumi Cryptos Capital to extend risk protection beyond its XRP-focused roots toward bitcoin and Stellar's XLM. Maven 11, Metalayer, Joint Effects and Tribe Capital also participated. Phase 1 launched in December 2025 with liquid staking of FXRP, the wrapped XRP asset on Flare's FAssets system, and staked FXRP later surpassed $67 million after caps were raised repeatedly. Phase 2 is designed to turn that staking base into an onchain coverage marketplace in which collateral providers underwrite risks such as smart-contract failures and slashing events in exchange for yield, with transparent pricing and claims reviewed within 10 days by an independent Risk Consortium that includes GFX Labs and Credora. A partnership with Lombard announced in May 2026 is set to add Bitcoin exposure through LBTC, Lombard's liquid Bitcoin staking token, while XLM remains on the roadmap. Firelight was incubated by Sentora, whose vaults have held $2.4 billion in assets, remains non-custodial at the smart-contract layer, has completed multiple audits and runs public bug bounties, and has planned the protocol and first cover integrations for September after revising an earlier second-quarter 2026 timetable. The project says its coverage is not insurance and does not create an insurance contract.