"One missing piece of DeFi infrastructure has been a protocol to insure loans against default."

"This piece is needed in order to enable DeFi participants to offer loans and debt products with more confidence and risk protection."

"1. A Protocol Enabling Safer Lending"

"Carapace creates a two-sided marketplace where traders can swap their default risk. Protection buyers pay a premium for the right to claim protection when an underlying loan defaults; in turn, protection sellers provide pooled capital for cover (in exchange for a premium)."

"The protocol is constantly adjusting based on supply and demand in a system where protection sellers provide capital for risk protection in exchange for a premium. If a default event occurs, a payout is made to protection buyers."

"2. An Embeddable Piece Of DeFi Infrastructure"

"As one example, Carapace has already partnered with Goldfinch, a leading DeFi credit protocol with nearly $100 million in active loans, to test their protocol – and have interest from others."

"Carapace was founded by Rohit Sabnis and Taisuke Mino who met in the South Park Commons program, an incubator and community of builders based in San Francisco."

"Tai has been a crypto hacker since 2013, and he has built various projects in DeFi including an options aggregator and Asia’s first mobile DeFi wallet."