SOLACE is a blockchain-based platform that aims to eliminate the challenges toward DeFi and other crypto applications. The platform also launched a coverage policy protocol aiming to extend protection to liquidity providers, decentralized organizations (DAO), or DeFi protocols. The primary purpose behind this is to reduce bugs, hacks, and loss, and to transform DeFi through empowering tools for a secure, safe, and trusted industry.

The whitepaper of SOLACE states that there are no efficient coverage options currently, and the risk of DeFi is also significant. Therefore, SOLACE aims to provide fast and efficient coverage protection and utilize intelligent risk management to minimize loss and risk. To achieve this objective, the platform seeks to focus on three aspects, which are auto claims processing, intelligent risk assessment, and high capital efficiency.

Through auto claims processing, SOLACE aims to allow users to file claims and get paid in a single transaction. Further, SOLACE aims to offer intelligent risk assessment that is based on qualitative and quantitative measures instead of market bias or human voting. Another aspect of the SOLACE protocol is high capital efficiency, whereby the platform seeks to provide the users with cost-effective coverage.

SOLACE aims to utilize bonding for the users who intend to provide capital in the underwriting pool or SushiSwap liquidity pool. The SushiSwap liquidity pools enable liquidity providers to add their tokens to liquidity pools. Such a measure seeks to allow for SOLACE to gain long-term sustainability of the protocol.

According to the whitepaper, SOLACE allows users to purchase coverage through investment in DeFi. Besides, the platform also allows users to stake the token SOLACE, the native coin of the SOLACE platform. SOLACE is an ERC-20-based governance token driven by the market. The staking of the token can be done through bonding or in the open market. Users can stake SOLACE tokens to earn yield from protocol revenue and gain governing rights.

Nikita Buzov is the cofounder of SOLACE. She has expertise in blockchain technology, Bitcoin, and Ethereum.