DeFi has around $91B in TVL right now. But how much of that money is actually protected if something goes wrong? The money set aside to cover losses is only about 0.14% of that. We spend hours comparing vault APYs and strategies, but rarely check what happens if a protocol gets exploited. It’s like obsessing over a car’s horsepower and skipping the insurance. DeFi already has protection options. The problem is that most vaults don't include them, leaving users to arrange to cover themselves. Interestingly, @Firelightfi recently launched a different approach to this, where the vault operator sets up the cover so every depositor gets it automatically. Here's how it works. If a covered vault suffers an eligible exploit, five independent security firms review the incident against predefined terms. Once validated, eligible losses can be paid from the capital backing the cover, subject to coverage limits. The money behind those payouts comes from people staking FXRP, which is basically XRP brought over to the Flare network. They earn rewards for taking on that risk, and there’s already 50M+ FXRP staked. It’s live on Sentora’s USD and RWA vaults, and Veda and Upshift have plugged it in so vaults built on them can switch it on anytime. I wouldn’t treat this as a guarantee. It only covers specific events like hacks and oracle attacks, and the terms still matter. But having protection built into a vault, rather than making everyone arrange it separately is kinda how this should’ve worked from the start.