Cozy Finance
Cozy Finance is a decentralized, non-custodial DeFi risk management protocol providing structured loss absorption for DeFi lending protocols and users. Its Safety Stack—Tranche, Reserve, and Protection Markets—enables tiered risk coverage across integrated protocols including Euler, Morpho, Fluid, and Across.
- Company typePrivate
- Founded2020
- HeadquartersSeattle, United States
- Headcount1–10
- GTM typeB2B and B2C
- OfferingSoftware
What Cozy Finance does
Cozy Finance is a decentralized, non-custodial DeFi risk management protocol that provides structured loss absorption infrastructure for lending protocols and DeFi users. The company's core offering is the Cozy Safety Module (CSM), a modular framework comprising three product lines: Tranche (internal protection that splits yield into risk-absorbing layers where junior tranches absorb losses before senior), Reserve (external protection establishing an asset backstop covering shortfalls), and Protection Markets (market-based contracts for tail risk hedging). The technology is built on Ethereum-based smart contracts and includes developer-facing modules such as Payout Vaults, Rewards Managers, Controllers, and integration components for protocol partners. Cozy serves two primary customer segments: DeFi lending protocols and dapps seeking embedded risk management infrastructure (with Euler Finance as the core integration partner, alongside Morpho, Fluid, Across, Boost, Lido, Aave, and Tether), and DeFi end-users seeking yield with structured protection through the Cozy Earn app (offering Cozy USDC, Cozy USDC+, and Cozy Reserve vaults). The company monetizes via on-chain vault fees including management, performance, curator, and safety module protection fees assessed automatically by smart contracts, with no publicly disclosed fee schedule or revenue figures. Cozy is venture-backed by tier-1 crypto-native investors including Polychain Capital, Coinbase Ventures, Electric Capital, Variant, Dragonfly, CMS Holdings, and Robot Ventures, having raised approximately $17.1 million total across seed ($2M, Sept 2020, led by Electric Capital) and Series A ($15.1M, May 2021, led by Polychain) rounds. The company is headquartered in Seattle, WA, operates with 1-10 employees, and was founded in 2020 by Payom Dousti (CEO) and Tony Sheng.
Cozy Finance firmographics
Firmographics- Name
- Cozy Finance
- Legal name
- Cozy Finance, Inc.
- Website
- https://cozy.finance
- Company type
- Private
- Founded year
- 2020
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Cozy Finance is a decentralized, non-custodial DeFi risk management protocol providing structured loss absorption for DeFi lending protocols and users. Its Safety Stack—Tranche, Reserve, and Protection Markets—enables tiered risk coverage across integrated protocols including Euler, Morpho, Fluid, and Across.
- Ownership category
- akta.pro rank
Cozy Finance industry classification
Industry- Product category
- DeFi Risk Management Infrastructure
- NAICS
- Other Insurance Funds (52519)
- SIC
- Surety Insurance (6351)
- akta.pro primary industry
- DeFi Insurance & Protection Markets (covers, mutuals, slashing/peg protection) (FSAPAEAK)
- akta.pro secondary industry
- Borrowing/Lending Risk & Credit Infrastructure (on-chain credit scoring, risk engines, insurance wrappers) (FSAPAEAI)
Keywords
Where Cozy Finance is headquartered
LocationHeadquarters
- HQ city
- Seattle
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Cozy Finance business model
Business model- GTM type
- B2B and B2C
- Offering type
- Software
- Cost components
- Technology or R&D, Personnel, Operations, Marketing or Sales
Revenue model
- Vault Fees: One or more Vaults may charge management and/or performance-based fees, protocol fees, curator fees, or other on-chain fees. These fees are assessed, accrued, or collected in Vault assets, rewards, or other tokens and deducted automatically by Smart Contracts.
- Gas Fees (Network Fees): Users pay gas charges on the Ethereum network or other blockchains to perform transactions. Cozy has no control over these fees but they are required for service usage.
- Safety Module Protection Fees: Protected Vaults pay for safety while Plus Vaults and Reserves earn higher yields by providing coverage. This creates a market for protection where risk is priced and transferred.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Pay-as-you-go | Variable vault fees determined by each vault's configuration |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels5 records
Cozy Finance product offering
Product offeringCore offering
Cozy Finance operates a decentralized, non-custodial DeFi risk management protocol built on Ethereum that provides structured loss absorption for DeFi lending protocols through its Safety Stack. The platform offers modular components including Tranche, Reserve, and Protection Markets, plus an end-user Earn application (Protected Vaults, Plus Vaults, Reserves) that lets depositors earn yield while providing or acquiring layered protection against hacks, exploits, and bad debt.
Product overview
Cozy Finance is a decentralized, non-custodial DeFi risk management protocol that operates as a platform-plus-modules architecture. The core offering is the Cozy Safety Module (CSM), which provides comprehensive risk management solutions to help protocols protect user capital. The platform comprises three main product lines: Tranche (for internal risk structuring with yield splitting into risk-absorbing layers), Reserve (for establishing asset backstops covering shortfalls), and Protection Markets (for market-based protection contracts). Additionally, Cozy offers end-user products through the Earn app with three vault types (Cozy USDC for protected lending, Cozy USDC+ for coverage providers, and Cozy Reserve for tail risk backstoppers). The platform integrates with Euler Finance for vault-level bad debt protection, and provides technical modules including Payout Vaults, Rewards Managers, and Euler Vault Integration components for developers.
Differentiator
Problem solved
Functional benefit
Brands
- Cozy Earn: Lending vault application with Safety Stack protection, allowing users to earn yield with layered risk protection.
- Cozy Safety Module (CSM)
Products and services
- Cozy Safety Module (CSM) Modular risk management infrastructure that lets DeFi protocol teams protect user capital from hacks and exploits through configurable safety modules, reserve pools, and raise strategies.
- Tranche
Quantifiable outcome
- The November Stream Finance collapse resulted in $93 million lost with xUSD crashing 85% overnight and $285 million in exposure across the ecosystem. With the Safety Stack, depositors would have been protected through the layered defense mechanism.
Companies that use Cozy Finance
Customer profileSegments2 records
Ideal customer profiles2 records
Cozy Finance technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration1 record
Feature7 records
Cozy Finance partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core.
- Euler FinancecoreEuler Finance is a decentralized lending protocol that has integrated with Cozy Safety Module. The integration allows Euler vaults to atomically repay bad debt post-liquidation using eTokens tapped from a Safety Module. Cozy provides Euler with alternative bad debt management to their default socialization approach.
- MorphocoreMorpho is a DeFi protocol that aggregates lending markets. Referenced as an integration partner where Cozy's protection mechanisms work with Morpho vaults to provide structured loss absorption.
- FluidcoreFluid is a DeFi lending protocol integrated with Cozy's Safety Stack. The partnership enables Fluid vaults to offer users structured protection against bad debt and exploits.
Scale indicators2 records
Recent moves6 records
Expansion highlights5 records
Cozy Finance competitors and assessment
Company assessmentDirect peers
- Nexus Mutual: Nexus Mutual is the largest decentralized insurance protocol, offering cover against smart contract failures and protocol exploits via a mutualized staking model. Directly competes with Cozy's Protection Markets and Reserve products for the same DeFi risk-protection demand.
- Sherlock: Sherlock provides smart contract cover for DeFi protocols backed by staked capital from auditors and security experts. It competes head-to-head with Cozy's Reserve and Protection Markets as a coverage layer for DeFi lending and yield products.
- InsurAce: InsurAce is a multi-chain DeFi insurance protocol offering cover against smart contract hacks, stablecoin depegs, and exchange listings. It targets the same protection-buyer segment as Cozy with overlapping product offerings.
- Premia Finance: Premia is a decentralized options protocol that lets users buy and sell coverage via options markets. Its put options on smart contract / protocol exposure overlap with Cozy's Protection Markets as a market-based mechanism for hedging tail risk.
- Risk Harbor: Risk Harbor (now Concentric) provides smart-contract coverage for DeFi protocols via pooled capital and governance-driven payouts. Its risk-pool architecture and cover products are direct alternatives to Cozy's Reserve and Protection Markets.
Broad incumbents
- EigenLayer: EigenLayer enables restaking to secure additional protocols (AVSs) and is emerging as a foundational primitive for on-chain risk and security services. As a broader shared-security platform, it is an adjacent incumbent whose slashing-based security could complement or compete with Cozy's tranche/reserve architecture.
- Maple Finance: Maple is an institutional lending protocol with built-in credit risk management and pool delegate underwriting. It addresses a similar risk-management-for-DeFi-lending pain point to Cozy, but operates its own loan-origination business rather than selling risk infrastructure.
Emerging players
- Ribbon Finance: Ribbon offers structured DeFi products including covered calls and yield vaults. While narrower in scope than Cozy, it represents a category of structured on-chain products where risk is explicitly tranched and priced, similar to Cozy's Tranche product.
Others
- Euler Finance: Euler is a modular DeFi lending protocol and Cozy's flagship integration partner for bad-debt protection. Not a direct competitor — Euler is a customer and integration partner — but its permissionless lending vaults define the product surface Cozy's Safety Module plugs into.
- Morpho: Morpho is a lending-optimization protocol whose vaults are listed as Cozy integration partners. As an integration counterparty rather than competitor, Morpho's growth directly expands Cozy's addressable protection market.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights6 records
Customer concentration
Cozy Finance social profiles
Digital presenceCozy Finance compliance and trust
Trust signalCompliance4 records
Cozy Finance financial estimates
Financial estimateRevenue estimate
Valuation estimate
Cozy Finance leadership team
Management profileNumber of profiles
Profiles2 records
Cozy Finance funding detail
Funding detailFunding overview
Funding rounds2 records
Investors8 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Cozy Finance M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Cozy Finance
What does Cozy Finance do?
Cozy Finance operates a decentralized, non-custodial DeFi risk management protocol built on Ethereum that provides structured loss absorption for DeFi lending protocols through its Safety Stack. The platform offers modular components including Tranche, Reserve, and Protection Markets, plus an end-user Earn application (Protected Vaults, Plus Vaults, Reserves) that lets depositors earn yield while providing or acquiring layered protection against hacks, exploits, and bad debt.
Is Cozy Finance a public or private company?
Cozy Finance is a private company. It is classified as venture growth investor backed and is currently operating.
When was Cozy Finance founded?
Cozy Finance was founded in 2020. It employs 1 to 10 people.
Where is Cozy Finance based?
Cozy Finance is headquartered in Seattle, United States, in the North America region.
How does Cozy Finance make money?
Three revenue lines are on record. Vault Fees are the primary driver. The others are gas Fees (Network Fees) and safety Module Protection Fees.
Who are Cozy Finance's main competitors?
Direct peers on record are Nexus Mutual, Sherlock, InsurAce, Premia Finance and Risk Harbor. Broad incumbents are EigenLayer and Maple Finance. Ribbon Finance is listed as an emerging player. Others are Euler Finance and Morpho.
Does Cozy Finance have an API?
No public API is recorded for Cozy Finance.
What industry is Cozy Finance in?
Cozy Finance's product category is DeFi Risk Management Infrastructure. Its primary akta.pro industry code is FSAPAEAK, DeFi Insurance & Protection Markets (covers, mutuals, slashing/peg protection), with a secondary code of FSAPAEAI, Borrowing/Lending Risk & Credit Infrastructure (on-chain credit scoring, risk engines, insurance wrappers). Its NAICS code is 52519 and its SIC code is 6351.