CoverPools
What is a CoverPool
A CoverPool is a risk-isolated coverage instance in Catalysis that aggregates committed, slashable restaker delegations into a pool of raw coverage capacity. That capacity is allocated to underwrite risks for specific vaults on Tier-1 DeFi protocols
CoverPools are isolated across both underwriting logic and economic exposure.
What CoverPools do
- Connect: Restakers (capacity providers) ↔ Vaults (e.g., Morpho, Euler) in a single onchain flow
- Aggregate: Slashable delegations → usable coverage capacity
- Issue: Coverage contracts with explicit terms (limits, pricing, payouts)
How CoverPools enable modular risk coverage
DeFi Vaults are modular; each vault’s risk profile is different (protocol mechanics, assets, curator/manager controls, strategy parameters, dependencies).
A single global pool either overprices safe vaults or cross-subsidizes risky ones. CoverPools solve this by matching vault modularity with coverage modularity.
- Per vault or vault class: A CoverPool is configured for a specific vault (say Morpho Gauntlet USDC Prime, Morpho Steakhouse ETH) not “all vaults.”
- Capacity is pool-scoped: Restakers choose which CoverPool to back; losses (and incentives) stay contained within that pool.
- Pricing is accurate: Risk is priced inside the CoverPool that takes it and premiums reflect each pool’s mandate.
- Coverage stays composable: New vault designs don’t break the system. When vault types evolve (new curators, strategies, protocols), Catalysis can spin up new CoverPools to match them.