Cozy Finance offers a permissionless, peer-to-peer Safety Module that creates an on-chain emergency fund to compensate users for losses due to smart contract failures, hacks, or exploits. This solution provides up to $250,000 in protection per user, enhancing user confidence and promoting growth within decentralized finance protocols.
Funding
$15.1M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
PFounders
Product
Problem
Decentralized finance (DeFi) users face the risk of losing funds due to smart contract failures, hacks, and exploits, which can erode confidence and hinder the growth of DeFi protocols. Traditional insurance solutions may be unavailable or impractical for new projects, and often require users to actively purchase coverage and file claims.
Solution
Cozy Finance offers Safety Modules, a permissionless, on-chain emergency fund that compensates users for losses resulting from security incidents. Protocols can create dedicated pools of capital to cover users up to a specified cap, enhancing trust and promoting sustainable growth. These modules can be configured with custom coverage caps and transparent payout logic, funded from the protocol's balance sheet, fees, or incentivized user contributions. Payouts can be initiated and controlled by the community or a neutral third party, providing a streamlined, trustless claims process.
Target Audience
The primary target audience includes DeFi protocols seeking to protect their users and foster confidence, as well as users who want assurance against potential losses from hacks or exploits.
Features
- Customizable coverage caps and transparent payout logic
- Flexible funding options, including balance sheet funding, fee redirection, and incentivized user contributions
- DAO or third-party voting for payout initiation and control
- Anti-sybil protection to prevent fraudulent claims
- User interface for contribution, reward management, and claims processing
- Support for individual project or ecosystem-wide protection