Solace is a decentralized coverage protocol, insurance-alternative, that allows DeFi liquidity providers and market makers to hedge their risk in the event of smart contract exploits. The way how Solace implements a safe, simple and intelligent structure provides a new advantageous model for DeFi users. Solace is acquiring Protocol's own underwriting capital to increase capital loyalty and to take the underwriting risk away from individual users. An automatic claim assessment system enables users to receive a payout in a fast, easy, and transparent way, with no community voting. An intelligent risk assessment system, based on quantitative and qualitative modeling, not only provides accurate prices but incentives people to use its compatibility to develop their own risk models and earn a fee from policy sales. Users and DAOs can interact with Solace in different ways: buy coverage, bond assets, stake $SOLACE, become a risk manager, provide coverage for liquidity pool or treasury.