Firelight adds $30.5M of cover to Kraken USDC vault

Firelight has added $31M of cover to Kraken’s Protected Strategies USDC vault. That gives depositors a backstop if the underlying DeFi plumbing springs a leak. The coverage went live on October 15, 2026. It arrives just nine days after Firelight itself launched. How the coverage works The vault is curated by Sentora, which routes deposits into what it describes as blue-chip DeFi venues. Firelight’s cover sits on top as a second layer of protection. Each depositor address is capped at $100,000 of coverage per coverage period. The policy targets specific technical failures. Covered events include smart contract exploits and oracle failures. Oracles are the data feeds that tell onchain programs what prices are. When they break, a protocol can make very confident decisions based on very wrong numbers. Coverage terms are established and verified onchain every 30 days, so the parameters can be adjusted as the vault’s risk profile shifts. Payouts are handled by Sentora, not guaranteed by Kraken. Depositors are not getting a promise from the exchange’s balance sheet. They are relying on the cover structure that Firelight and Sentora have built around the product. Who decides when a claim p...