Cozy v2: the Protection Protocol

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

Ways to use Cozy

Hedge against risks like smart contract hacks by purchasing protection, or earn yields by providing protection. Don’t see the market you’re looking for? You can use the protocol to create markets yourself. Cozy v2 has the right market, at the right price, at any time.

Buying protection

If you’re a staker, lender, LP, or earning on-chain yield some other way, buying protection on Cozy can help protect your principle from tail risks like the billions of dollars lost in smart contract hacks every year.

Providing protection

Or if you’re a more advanced yield seeker comfortable with underwriting your own risks, providing protection on Cozy can help you earn high risk-adjusted yields.

Creating protection

Other venues for protection suffer from restrictive designs for price, payout, and risk management. Cozy v2 is designed with the philosophy that the best results come from permissionless creation and market forces. Anyone can create a basket of risk with markets that determine price and payout logic as they see fit, increasing the likelihood that a user finds the protection they need.

Key features

Key features include permissionless creation of markets, predictable and automatic payouts, programmatic pricing, and high levels of capital efficiency.

Permissionless market creation

You can create markets that cover anything--whether that’s depegs, hacks, custodian risk, or something else entirely. No gate-keepers here.

Predictable and automatic payouts

Buy protection on Cozy v2 and get paid out transparently and automatically, without an opaque claims process.

Programmatic pricing

Pay a fair price, set by programmatic price discovery.

Capital efficiency

Earn higher yields for providing protection and pay lower prices for buying protection with Cozy v2’s capital efficient design.

Cozy v2 is live

Cozy v2 is live on Optimism in a guarded launch.

Try Cozy v2 today.

Over the next few weeks, we will publish more in depth explorations for each aspect of the protocol. Follow on twitter and subscribe to the blog to be the first to read.

Disclaimers: Investing in DeFi protocols and assets carries inherent risks. This guide is for informational purposes only and not financial, investment or other advice. Please refer to specific market terms to learn more about coverages and risks. Always do your own research and consult a financial professional before making investment decisions. This material and the Cozy protocol are not intended for use by US persons. Any yields and other figures represented in this document are estimates and are not guaranteed.

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