DeFi Insurance Protocol Solace Goes Live

Insurance claims will be automatically validated, and payouts will be made in a single transaction.

AccessTimeIconOct 19, 2021 at 5:00 p.m. UTC
Updated May 11, 2023 at 5:46 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Decentralized finance (DeFi) insurance protocol Solace, which provides coverage policies for Aave, Compound and Uniswap among others, has gone live after eight months of development and four months on the Ethereum Rinkeby and Kovan testnets.

The protocol provides compensation for losses by managing risk using assessment based on analytics instead of voting or staking. The protocol is intended to help liquidity providers hedge their risk when there is potential of smart contract exploits.

  • How Spool Is Aiming to Help Institutions Enter DeFi
    11:05
    How Spool Is Aiming to Help Institutions Enter DeFi
  • The U.S. Is Weighing Crypto Tax Rules: What Could Happen Next?
    05:37
    The U.S. Is Weighing Crypto Tax Rules: What Could Happen Next?
  • How a New Tax Proposal From the IRS Could Impact DeFi
    00:46
    How a New Tax Proposal From the IRS Could Impact DeFi
  • Curve Finance’s Stablecoin Maintains Peg as Others Struggle: Kaiko
    01:27
    Curve Finance’s Stablecoin Maintains Peg as Others Struggle: Kaiko
  • “As a user, I don’t trust the current mechanisms like voting, staking or market forces, in other words ‘wisdom of the crowd,’ to accurately evaluate risk exposures and predict losses,” said Solace founder Nikita Buzov.

    Solace said insurance claims will be automatically validated and requested within the network, and payouts will be made in a single transaction. The protocol describes itself as “censorship-resistant” and does not feature a know-your-customer (KYC) method.

    Solace has received financial grants from Polygon, NEAR and Aave.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Tanzeel Akhtar

    Tanzeel Akhtar is a reporter based in London,UK.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about