DeFi Digest: Sherlock, Boto and Polynomial Protocol

Decentralized DeFi insurance has continued to be a tough nut to crack, with projects like Risk Harbor offering various novel features to attract users and capital. Sherlock is another contender in the DeFi insurance space with an approach that mimics insurance providers in the traditional world.

On Sherlock, each insurance coverage package for protocols gets a custom proprietary security analysis. Instead of protocols requiring their users to individually buy insurance for themselves, Sherlock’s goal is to help protocols offer built-in insurance policies. That is, if a user deposits assets in a lending protocol, instead of going off-platform to buy a third-party insurance package for their deposits, the lending protocol that they’re using will offer the insurance directly with Sherlock as the backend.