SAFU Introduction
SAFU Introduction
SAFU is a decentralized insurance protocol designed as infrastructure for sophisticated institutions to create, curate, and operate on-chain insurance markets. Rather than acting as an insurer, SAFU provides a neutral, immutable base layer where risk can be transferred, priced, and managed in a transparent and non-custodial manner.
SAFU introduces self-repaying insurance, where a small portion of yield from yield-bearing assets is sacrificed to create economic incentives for underwriting capital, enabling continuous insurance coverage without upfront premiums. This allows users to hedge protocol, insolvency, or smart contract risk while maintaining capital efficiency.
The SAFU Protocol
The SAFU Protocol is implemented as immutable smart contracts that enable the creation of permissionless insurance markets. Each market defines its own risk scope, coverage logic, and parameters, while relying on SAFU’s standardized primitives for settlement, loss absorption, and yield distribution.
Insurance underwriting can be sourced from restaked capital or native vaults, depending on the market design, without coupling the protocol to a single liquidity model.
Market Infrastructure for Risk Transfer
SAFU is built to support institution-grade risk markets.
Risk Curators, such as risk firms, security auditors, DAOs, or specialized institutions, define assumptions, trigger conditions, coverage limits, and pricing frameworks. SAFU enforces these rules on-chain, enabling users to safely transfer risk and discover fair pricing through market participation.
Vision
SAFU aims to become the infrastructure for on-chain insurance markets, where risk is transparently priced, safely transferred, and continuously underwritten by decentralized capital.
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