About the Sherlock Ecosystem

Sherlock is a risk management platform designed to provide DeFi protocols with affordable, reliable coverage against smart contract exploits starting from Day 1.

There are 3 main participants in the Sherlock ecosystem: Protocols, Stakers, and Watsons.


Protocols pay Sherlock a small fee in return for an upfront security assessment and repayment in the event of an exploit. A protocol will indicate how much value they want covered ($1Bn, a specific pool, etc.), and Sherlock will work with each protocol individually to draft a coverage agreement that outlines exactly what types of events/risks they want covered.


Coverage is written against the capital provided by stakers. In return for providing capital, stakers get access to one of the highest, sustainable, uncorrelated APYs in all of DeFi. Sherlock was designed to make staking as easy as setting it and forgetting it. Because the security team does all the heavy lifting, stakers simply need to trust the incentives of the security team to know their returns are being maximized.

Security Team

The Watsons are comprised of some of the top smart contract security and risk experts in Web 3.0. Not only does this band of rebels find vulnerabilities in code and spot economic attack vectors, but they agree to put the majority of their compensation at risk—only to be returned if covered protocols stay safe from exploits over time.