Solace Re-emerges With a New Look and Architecture

The DeFi (Decentralized Finance) ecosystem has emerged as a rapidly growing sector within the blockchain industry. With its decentralized nature, the DeFi industry has opened up new opportunities for investors and traders to access financial services that were previously inaccessible. However, with this new innovation, new risks have also emerged. These risks are not only limited to financial risks but extend to non-financial risks such as smart contract risks of hacks and exploits, staking slashing risks, de-pegging risks, fraud, etc. To address these risks, Solace continuously iterated over different product designs in search of product-market fit and solution to the challenges in DeFi insurance.

With Solace starting as a DeFi insurance protocol, over the 2 years we’ve realized two fundamental flaws with insurance model that go against the nature of DeFi: necessity for human input in claims process, and need for probabilistic underwriting to generate returns. But we've found a way to avoid them using an operational risk market that provides capital efficient risk underwriting, yet without fractionalized reserves, and with deterministic outcome in the events of a loss, thus completely removing claims process.

Solace argues that DeFi can’t rely on the same insurance models as in traditional finance, yet the vast majority of DeFi insurance space followed the same fundamental approach and assumptions. So far, this has worked with little success nor scaled, now Solace is pushing to redefine the space through our Risk Market.

Today, Solace releases the new website and branding identity to signify this next chapter. While the latest whitepaper and documentation will be published in the coming weeks, some hints and features can already be seen on Solace’s website.

The updated identity is inspired by emission spectrum of chemical elements, as every DeFi product and tool carries its own unique combination of risks. Given high composability of DeFi products, risks also add up, and so Solace started referring to those as a risk stack. Developing a risk market to allow hedging each individual risk within that risk stack is our objective with the new protocol architecture, and so the new branding represents exactly that.

Check out the Solace brandbook here. To download brand assets go here.

Discover the advantages of the Risk Market over the traditional DeFi insurance model by visiting Solace.fi. Don't forget to join our Discord server to share your feedback and ask us any questions you may have. To stay informed about our latest news, including our launch date, be sure to follow us on Twitter.

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