Other · Underwriting
Cozy Finance (Cozy Protocol) lets users buy and sell parametric protection against protocol-specific triggers. Protection markets settle automatically when on-chain conditions fire — no token governs the core markets today.
Parametric protection markets for DeFi protocols.
Protocol TVL
$753.6K
Latest data · 15 min delay
Cozy is entirely smart-contract-based; a bug in the safety-module, trigger, or protection-market contracts could cause loss of supplier capital or failure to pay valid claims. Mitigated but not eliminated by multiple audits (Zellic, Cantina, Electisec) and Certora formal verification.
Protection is only as good as the capital supplied by underwriters. If a safety module or market is under-collateralized relative to a loss, users receive only pro-rata payouts, so buyers bear the counterparty/capacity risk of insufficient reserves.
Payouts depend on trigger resolution. Triggers that rely on price feeds, external data, or automated conditions can misfire (false positive/negative) if the underlying oracle or data source is manipulated, delayed, or wrong.
For non-automated markets, claim/trigger resolution can be delegated to a DAO or multisig chosen by the module creator. This introduces discretionary human/governance risk over whether and how much a valid claim is paid.
As DeFi-native cover, Cozy is exposed to correlated tail events: a large market-wide exploit or contagion could simultaneously trigger many modules and exhaust provider capital, and the protocol has no external insurer-of-last-resort backstop.
