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 this blog post, discover how Cozy v2 empowers yield seekers and project leaders to develop and access customizable protection markets.

Permissionless and Modular Market Creation

Cozy v2 solves this problem by empowering users to create markets. The protocol provides a step-by-step guide to develop triggers, essential for determining payouts in protection markets. Here's how you can develop triggers using Cozy v2:

Click on "Your Triggers."

Once connected on the Cozy app, click your wallet address dropdown in the top right and select “Your Triggers” to go to the Cozy Admin section.

First, go to the admin section of the Cozy app and select “create a protection trigger.”

Choose the desired trigger type template.

Select a trigger template or create your own.

Chainlink

The Chainlink template compares a chainlink price feed with either another chainlink price feed or a fixed value. This type of trigger is useful for pegged assets like Dai or stETH.

An example of a market using the Chainlink template is the stETH Peg market.

UMA

The UMA template presents a query to the UMA Optimistic Oracle and triggers the market if it returns a YES response. This type of trigger is useful for more general markets.

An example of a market using the UMA template is the Aave v2 market.

Custom

If you want more custom logic, you can create your own trigger. For example, if you want a multisig to make the decision. Or a combination of a programmatic trigger and a multisig.

Configure your trigger

Once you’ve selected your template, configure the trigger by selecting the price feeds, writing the UMA query, or developing your own custom trigger.

Chainlink:

UMA:

Add metadata to your trigger

Provide an image, a title, and a description so that users can most easily use of your trigger.

Review and deploy your trigger

If everything looks good, you can deploy your trigger. It will now be usable by set admins when they are creating and managing their sets.

If you want to create a market with this trigger, you can create your own set and use this trigger to create a market.

Conclusion

You can create a trigger today in the app. Have questions? Join the discord and ask the community.

Disclaimers: Investing in DeFi protocols and assets carries inherent risks. This guide is for informational purposes only, and is not financial, legal, investment or other advice. Please refer to specific market terms and cozy.finance to learn more about coverages and risks. This material and the Cozy protocol are not intended for use by US persons.