Cozy Finance
Seattle, US · Founded 2020 · Delaware corporation · 8 known investors
Cozy provides modular on-chain risk protection for DeFi protocols, offering tools like yield tranches, asset reserves, and market-based protection contracts to cover risks such as bad debt, hacks, and exploits. It targets protocols and their users seeking automated, transparent safety mechanisms.
Also known as Cozy · Cozy Finance, Inc.
Founders & leadership
Investors · 8
Reported raises · per SEC filings
Form D private placements$17.1M disclosed across 2 rounds · 2020–2021
▶$15.1MraisedMay 2021 · 32 investors · Other TechnologyRule 506(b)
- Tony ShengDirector
- Payom DoustiExecutive Officer, Director
- Offering amount
- $15.1M
- Amount sold
- $15.1M
- First sale
- May 2021
- Incorporated
- Corporation, Delaware, 2020
- Federal exemptions
- 06b
▶$2MraisedSep 2020 · 18 investors · Other TechnologyRule 506(b)
- Tony ShengDirector
- Payom DoustiExecutive Officer, Director
- Offering amount
- $2M
- Amount sold
- $2M
- First sale
- Aug 2020
- Incorporated
- Corporation, Delaware, 2020
- Federal exemptions
- 06b
Source: SEC EDGAR Form D. Amounts as filed; amended filings shown once at their latest values.
Company profile
researched Aug 2026Cozy Finance markets what it calls a "DeFi safety stack": a set of modular risk-management components that protocols can integrate to cover losses and to attract what the company terms safety-seeking capital. The website groups the offering into three categories. Internal protection structures risk inside a protocol's own product, with stated use cases including bad debt repayment, first-loss repayment, and curator skin-in-the-game; the corresponding module, Tranche, splits yield into senior and junior tranches, where the staked junior tranche absorbs losses before the senior. External protection operates outside the product offering and targets hack, exploit and general disaster scenarios; the Reserve module establishes a backstop holding assets that cover shortfalls. Opt-in protection consists of market-based contracts covering security and market events for supplemental protection or hedging, delivered through Protection Markets, in which a protocol's users can buy or supply protection against tail risks.
The site frames the product positioning around automated risk recovery (reducing reliance on post-mortem funds), composability (any protocol can plug in and define its own notion of safety), and coverage backstopped by decentralized markets rather than insurers. It also emphasizes security assurance, citing audits, monitoring and formal verification, with audit dates listed for March 2024, May 2025, August and October 2025, and December 2025. The site distinguishes user-facing entry points (Earn, Safety Modules, Protection Markets) from protocol-facing modules, and separately references a prior version of the protocol as "Cozy V1" [0][1].
Business model
Cozy supplies risk-protection infrastructure that protocols integrate into their own products, and also exposes user-facing products such as Earn, Safety Modules and Protection Markets. The sources do not describe pricing or how the company monetizes these modules [0][1].
Traction
No user, volume, revenue or capital-covered figures are disclosed in the available sources. The site refers to being "backed by the best" without naming investors [0][1].
Latest developments
The website, copyrighted 2025, lists security audits dated December 2025, August and October 2025, May 2025 and March 2024, and references an earlier protocol generation as Cozy V1 alongside the current Tranche, Reserve and Protection Markets modules [0][1].
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
The sources describe the company as an infrastructure provider for DeFi risk protection but give no market-share, ranking or competitive comparison data.
Positioned on predictable, automated risk recovery instead of discretionary post-incident funds; composable modules that let each protocol define its own safety parameters; and coverage backstopped by transparent decentralized markets rather than traditional insurers [0][1].
Technology
On-chain, modular smart-contract components: tranching of yield into loss-absorbing junior and protected senior positions, asset reserves acting as a backstop for shortfalls, and market-based protection contracts. The company states the contracts are audited, monitored and subject to formal verification, listing audit dates from March 2024 through December 2025 [0][1].
Go-to-market
Direct engagement with protocols via a "Contact us" flow on the website, alongside a self-serve application ("Launch app") and documentation for integrators [0][1].
DeFi protocols seeking to structure or backstop risk (bad debt, first-loss, curator skin-in-the-game, hacks, exploits) and their end users, who can buy or supply protection and earn yield through safety modules [0][1].
Geography
A funding-filing record lists the company as Cozy Finance, Inc. at 113 Cherry Street, Seattle, Washington, United States [2].
History
A filing-derived record reports a $15.1 million venture round for Cozy Finance, Inc. dated May 28, 2021 [2]. The current website references a prior protocol version, "Cozy V1", and a sequence of audits beginning March 2024 [0][1].
Risks & controversies
No disputes, incidents or controversies are reported in the available sources.
Compiled by commissioned research from 3 cited public sources — announcements, filings, and press listed under research sources below.
Timeline · 5
launches, deals, and filingsThe company website lists security audits dated August and October 2025.
The company website lists a security audit dated March 2024 among its audits and formal verification work.
A filing-based report states Cozy Finance, Inc. raised $15.1 million in an initial filing from an offering of $15.1 million, categorized as a venture round of unknown series.
$15.1M source ↗
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
Legal entities · 1
corporate structureIn the news
▸Research sources · 3
primary sources listed
- Cozy Financecozy.finance · web
3 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Cozy Finance do?
- Cozy Finance builds a modular on-chain "DeFi safety stack" of tranches, reserves and protection markets for protocols.
- Who are Cozy Finance's investors?
- Cozy Finance's investors include Coinbase Ventures, Dragonfly, Electric Capital, Metastable, Variant Fund, Robot Ventures, Slow Ventures, VOLT CAPITAL.
- How much funding has Cozy Finance raised?
- Cozy Finance has disclosed $17.1M raised across 2 rounds.
- Where is Cozy Finance headquartered?
- Cozy Finance is headquartered in Seattle, US.