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first_img Firelight adds $30.5 million on-chain collateral for Kraken USDC treasury

According to The Defiant, the on-chain insurance protocol Firelight based on the Flare network announced on October 15 that its on-chain insurance has launched the Protected Strategies USDC vault for Kraken DeFi Earn, providing a collateral-backed compensation mechanism for specific protocol failures.The independent manager of the vault, Sentora, insures the vault rather than Kraken itself. Depositors do not need to actively choose to participate, but the insurance comes with conditions: Kraken discloses that the compensation limit for each deposit address during each insurance period is $100,000, and the total compensation amount is also constrained by the overall vault limit and available capital. Compensation is issued by Sentora in USDC to eligible wallets, and Kraken does not provide funds or guarantees.Firelight lists six types of failures that are eligible for compensation: smart contract vulnerabilities, oracle failures, governance attacks, and bad debts, depegging, or redemption failures caused by protocol mechanism failures. Insurance only applies to markets and positions recorded during the insurance period. Normal fluctuations, normal liquidations, depegging that operates as designed during redemption, and withdrawal delays caused by high organic utilization are excluded; insider theft, stolen private keys, phishing, and regulatory actions are also not covered.The trigger conditions for redemption failure are if the insured position cannot be withdrawn for more than 72 consecutive hours, or if the amount returned after deducting disclosed fees is less than 90% of fair value. Compensation does not require depositors to file claims themselves, as it is determined by a five-member risk committee through a three-fifths majority vote.On-chain records show that the insurance scale marked as "Kraken DeFi Protected" is $30.5 million.

first_img NEXTPredict invested $12,000 to hedge against flight cancellation risks at Kalshi

The media and conference organization NEXTPredict announced that it has executed the first trade in the flight cancellation market through Kalshi to hedge investments for its October summit, locking in $3 million in guarantees. The company paid a premium of $12,000, and if the cancellation rate of flights arriving at New York's Kennedy International Airport on October 21 exceeds 50%, the contract will automatically pay out, covering the summit costs, as October 21 is the main travel day for attendees. Susquehanna acted as the market maker for this transaction.Kalshi launched the flight cancellation market after self-certifying the contract with the U.S. Commodity Futures Trading Commission (CFTC) on July 14, allowing participants to trade on whether the cancellation volume at specific airports exceeds preset thresholds. This market does not target individual flights and has clear anti-manipulation clauses. NEXTPredict is a media and event platform focused on the global prediction market industry, launched by the NEXT.io team. Its flagship event, the "Global Prediction Market Summit," will be held from October 22 to 23, 2026, at Convene Hudson Yards in New York, bringing together founders, executives, investors, and policymakers.NEXTPredict and Kalshi position this trade as institutional hedging, similar to how airlines hedge against fuel costs or farmers hedge against crop yields, rather than betting on the fate of the summit.
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