What is Cozy Finance?

Cozy Finance is a DeFi risk-management platform ("The DeFi Safety Stack") that provides protocols with modular capital-protection tools, helping them attract safety-seeking capital.

Key features:

• Tranche (internal protection) — splits yield into tranches: the staked junior tranche absorbs losses first, protecting the senior tranche; used by Euler, Morpho, Fluid

• Reserve (external protection) — establishes a reserve of assets to cover shortfalls from hacks, exploits, or other disasters; clients include Across, Boost

• Protection Markets (opt-in protection) — market-based contracts letting users buy and sell protection against tail risks (security and market risks); used by Lido, Aave, Tether

• Predictable safety — modules automate risk recovery, removing the need for protocols to rely on post-mortem funds

• Composable protection — any protocol can plug in and define what "safety" means for its own use case

• Institutional-grade coverage — backstopped by transparent, decentralized markets rather than opaque insurers