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 purpose is to transform DeFi by delivering intelligent, simple and empowering tools for a safe, secure and trusted industry.

The way how Solace implements a safe, simple and intelligent structure provides a new advantageous model for DeFi users:

1. Solace takes the underwriting risk away from individual users by acquiring Protocol's own underwriting capital. Anyone can participate in insurance by bonding assets in the underwriting pool or just stake SOLACE and earn fee from policy sales with no need to make a payout in the event of exploit.
2. An automatic claim assessment system enables users to receive a payout in a fast, easy, and transparent way, with no community voting. Users get a payout from code, not from community carrying loss. Within 3 days against 14-60 days where claim assessment bases on human participation.
3. Solace is one of the very few projects focusing on intelligent risk assessment based on quantitative analysis, probability, and uncertainty. And the developed permissionless system incentivizes people to deploy coverage products and risk strategies and earn a fee from policy sales.