De-Fi Insurance Protocol Solace, Backed by Polygon, NEAR, and Aave is Now Live
Insurance-alternative protocol allows DeFi liquidity providers to hedge their risk in the event of smart contract exploits.
California, October 19, 2021
Solace, a risk management insurance protocol for decentralized finance, has launched after eight months in development and four months on the Ethereum Rinkeby and Kovan testnets.
Entirely community-run, Solace offers coverage policies for DeFi protocols such as Aave, Compound, and Uniswap. Claims are instantly and automatically validated and claimed within the network, and payouts are made in a single transaction. Capital providers contribute to a single underwriting pool that is coming to multiple blockchains.
Solace aims to revolutionize the DeFi industry by providing investors with safety and security while contributing to the ecosystem. The protocol manages risk via intelligent assessment based on quantitative measures and analytics instead of voting, staking or other forms of “crowd wisdom”.
Supported by financial grants from the Polygon network, the NEAR Protocol, and Aave, Solace coverage policies are now available for the following DeFi protocols:
– Curve Finance
– Uniswap V2 and V3
Eventually, Solace will have its own $SOLACE token to further decentralize the protocol’s governance, but the token will not be available at launch.
Standing out from traditional finance solutions, users can experience Solace while remaining entirely anonymous. The protocol doesn’t feature a KYC method and is entirely censorship-resistant. Solace is releasing with a launch version of its DAO, which includes members like the founders of Axie Infinity, Zerion, and Alchemy.
“There are a few points I really wanted to focus on. First is simplicity and usability. With Solace, you don’t have to understand how the protocol works “under the hood” to use it, not even read the docs, just visit solace.fi and buy coverage, everything should be self explanatory without a knowledge barrier. Second is confidence in the claims assessment process. Claims processed by Solace are validated immediately and payouts happen in a single transaction, all thanks to our parametric automated system. Third is risk assessment. 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. Solace is driven by an analytical approach and incentivizes intelligent risk assessment through an architecture where people can offer their risk assessment models and earn fees for managing risk,” said Solace Founder Nikita Buzov.
Solace is a decentralized coverage protocol, insurance-alternative, that allows DeFi liquidity providers and market makers to hedge their risk in the event of smart contract exploits. Solace advances risk management of decentralized financial products by efficiently making coverage policies available to liquidity providers and other protocols. For more information on the Solace protocol and to find out how you can contribute, head to Solace.fi