Supported Protocols and Markets

Coverage is available only for markets that have been explicitly approved by the Firelight Risk Committee and added to the Cover Registry. This page describes how that list is maintained and what shows up in it at the feature-complete launch.

How the approved list works

A market is a combination of three attributes (with an optional fourth for DEX positions):

Attribute	Description	Example
Chain	The blockchain network	An EVM chain or L2
Protocol	The DeFi protocol hosting the market	A lending market or DEX
Market	The specific market within the protocol	A named lending market
Pool (optional)	For DEX positions, the specific pool	A named liquidity pool

Every market on the approved list has gone through Firelight's risk assessment: the protocol's risk components are monitored, capacity limits are set, and a base premium rate is published. The approved list is published in the on-chain Cover Registry with current available limits and base premium rates, and program operators should treat the registry, not this page, as the operative list.

Minimum eligibility

For a market to be considered at all, the underlying protocol must meet minimum standards:

Requirement	Minimum standard
Security audit	At least one comprehensive audit by a recognized firm
TVL threshold	A minimum TVL level sustained over a meaningful period
Operational history	A minimum time live on mainnet without a critical exploit
Team identification	Publicly identified team members with verifiable credentials
Governance structure	Documented governance with transparent decision-making
Bug bounty program	An active bug bounty with a meaningful maximum payout

Markets that do not meet these requirements are not eligible, regardless of demand. Certain conditions (an active incident, a lapsed audit, a sharp TVL decline, or an unverifiable team) trigger automatic exclusion regardless of other factors.

At the feature-complete launch

At launch, the approved list focuses on:

• Major EVM lending markets (selected markets on established lending protocols)

• Major DEX liquidity positions (selected pools on established DEXs)

• A curated set of strategies built on top of these primitives

The list starts small and expands over time as additional markets clear risk review and Risk Committee approval.

Collateral assets for stakers

Coverage is backed by staked capital. At the MVP, the single eligible collateral is stXRP (the Phase 1 staking token, backed by XRP via FXRP on Flare). Support for additional collateral assets is on the roadmap and would be added through governance in later versions. See Staking Overview for the staker side.

Payout currencies

Approved payout stablecoins are published on-chain and consist of major, audited stablecoins. Each Cover Token records a payout currency. At settlement the liquidation service fills in that currency first and falls back through the supported set if liquidity is insufficient. See Claims Process for the fallback rules.

How to propose a new market

An institution that wants a specific market added can submit a coverage request. The request triggers a preliminary eligibility screen, a full risk assessment if it clears the screen, a pricing-and-limits proposal, and publication to the Cover Registry on approval. Timelines depend on data availability and protocol complexity.

Where to read next

• How Coverage Works for the enablement flow.

• Risk Pricing Framework for how rates are produced.