Cozy Finance recently developed and open-sourced Agent Buttercup: a flexible, Rust-based framework for conducting computationally-intensive, agent-based simulations in an EVM environment.

In the Cozy V2 protocol, a market’s cost model sets the costs for purchasing protection and refunds for cancelling protection. Costs paid by protection purchasers are set aside in a fee pool and slowly accrue to protection suppliers as yield.

NounsDAO holds ~$50M in assets, with about half of those assets in Lido staked Ether (stETH). Members of the DAO have long wanted to hedge risks associated with the liquid staking protocol, but they had a problem: nobody was offering protection. The Cozy v2 protocol solved this problem.

Historically, only a fraction of projects that suffered hacks had protection available on any platform. This is largely because of the cumbersome processes required by protection platforms to support new projects. Cozy v2 changes this with a permissionless interface, enabling the creation of markets covering any protocol.

In early March of 2023, Euler Finance was hacked for nearly $200M. At the time, Cozy v2 was in early access and had an active Euler Finance market. This market triggered and paid out.

DeFi can offer valuable opportunities but those opportunities come with risks, like security vulnerabilities. The Cozy v2 Protocol (Cozy v2) offers a way to protect against those risks.

Meet the Cozy v2 protocol, a protection marketplace for on-chain yield seekers. Now live on Optimism.