DeFi built the composable financial stack, and now Credmark and Steady State Finance are teaming up to build the DeFi protection stack.

Credmark is proud to announce a partnership with Steady State Finance. Steady State is a protocol that is insuring DeFi protocols, and is using Credmark to inform their insurance markets.

Steady State Finance is securing the future of finance. They do this by pooling funds to insure against a panoply of operational risks. This is collected via indexes that allow for insuring across policies. The best part is the buy-in from a collection of protocols themselves. This protects their users by default, rather than putting the impetus on the individual to source and pay for their own insurance.

In order to insure the long-term value, actuarial and risk management services need to be in place. Assessments of the insured protocols need to be rigorously verified. This is where Credmark comes in.

Credmark’s existing work on financial cascade dynamics and illiquidity following market shocks (e.g. exploits, black swans, and rugs) will be used to feed Steady State’s insurance machine. For insurance use-cases, probability of a shock needs to be considered, the value that is at risk for the shock, and the tail effects for the protocol. Answers to these questions can be gleaned from Credmark’s risk metrics, on-chain data, and dependency assessments.

This better protects protocols, and therefore their users, from the diverse compendium of disquieting DeFi downsides we’ve all grown to know and… not quite love.

“Credmark’s risk assessment of how DeFi protocols like Aave, Compound, and Curve behave under volatile market conditions will directly inform Steady State’s insurance products,” says Neil Zumwalde, Credmark CEO. “This marks an important step in stabilizing the DeFi industry as Steady State will be the first insurance provider to insure financial risk, with Credmark providing the backend data.”

Steady State counterpart Jonathan Libby echoed the sentiment:

"Credmark shares Steady State’s vision for building a strong understanding of risk in DeFi to benefit users in our ecosystem. With this shared vision, we’re excited to partner alongside Credmark as we help users obtain the best possible yields with the least amount of risk. We look forward to strengthening this alliance over time as we continue to build and develop together.”

About Credmark

Credmark provides high integrity data and risk metrics through a transparent, distributed platform. By leveraging our community, we provide transparent models and data that are used to make better investment decisions.

About Steady State

Steady State is building a platform to safeguard the assets of DeFi protocols, entities, and their respective users. The platform eliminates bottlenecks prevalent throughout the insurance industry through automated processes, shared coverage policies, a cutting-edge risk analysis database, and Chainlink Keepers. Steady State creates a new paradigm for decentralized insurance by delivering DeFi’s most capital-efficient insurance platform at an entity level.

Tune in to Steady State’s Fireside Chat this week. To celebrate our partnership, Steady State will host Credmark’s Neil Zumwalde (co-founder) and Joseph Collier-Gray (Strategic Operations) alongside Steady State’s Jasmine Brunson (Head Database Engineer).