Carapace, a protocol to connect buyers and sellers of protection against default risk for under-collateralized DeFi loans, has secured $2.5 million led by NFX, Titan Capital and other investors.
The company plans to deploy the funds to grow the technical team and launch the protocol which requires comprehensive legal diligence and technical audits, Carapace said in a press release.
Founded by Taisuke Mino and Rohit Sabnis, Carapace builds a protocol for decentralised protection against default risk in unsecured crypto loans. The company said that it solves the problem of protection for lenders of under-collateralized loans by permitting lenders on DeFi lending markets to purchase protection against default in order to hedge their default risk.
Carapace’s initial pool will be built on the leading credit protocol, Goldfinch, and will initially be closed to users in the United States and certain other jurisdictions. The US-based company claims to have partnered with the Goldfinch team for its initial launch and will onboard several more lending protocols in the coming months.