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Catalysis Launches the First Vault-Native Risk Coverage Infrastructure for Institutional DeFi - Chainwire

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14Apr

Catalysis Launches the First Vault-Native Risk Coverage Infrastructure for Institutional DeFi

Singapore, Singapore, April 14th, 2026, Chainwire

Less than 1% of DeFi’s TVL is covered today. Catalysis is launching its mainnet on Ethereum to change that, bringing the first vault-native risk coverage to institutional vault deposits. At launch, coverage is live on the Gauntlet-curated WETH vault on Morpho, backed by capital specifically delegated to absorb risks.

Institutional participation in DeFi remains limited

DeFi vaults have continued to mature with risk management frameworks and guardrails to protect depositors. However, to date, vaults have lacked a native mechanism to define and bound their downside before deploying capital.

As a result, despite growing interest from TradFi allocators, crypto LPs, and fintech partners, onchain capital deployment remains limited.

Most onchain capital remains exposed to risks such as curator mismanagement, smart contract vulnerabilities, asset volatility, and depeg events, which can result in capital loss.

Catalysis enables risk coverage for institutional capital

Catalysis introduces a vault-native risk coverage layer purpose-built for institutional DeFi. Restaked capital from EigenLayer backs each CoverPool, a risk-isolated pool that aggregates coverage capacity for a specific vault.

The coverage contracts are embedded within vaults, execute deterministically, and settle onchain. Coverage terms are defined at the point of deposit, and payouts trigger automatically with no intermediary required.

At launch, Catalysis is embedding vault-native risk coverage within the Gauntlet-curated WETH vault on Morpho.

Risk coverage makes DeFi vaults deployable for institutions

Catalysis’ mainnet marks the first instance where DeFi has a complete infrastructure to support institutional capital at scale and offer legible coverage parameters for their deposits.

“The risk coverage layer has been one of the last missing pieces in making DeFi compatible with institutional capital,” said Abhishek, co-founder of Catalysis. “Institutions need defined downside before allocating capital. Catalysis enables that.”

Dhruv, co-founder of Catalysis, added: “DeFi is becoming an increasingly vault-driven economy. We built Catalysis so that risk coverage scales with it, without adding complexity for protocols or vault curators.”

Catalysis is currently working with leading protocols including EigenLayer, with coverage live on the Gauntlet-curated WETH vault on Morpho. Expansion to more Morpho vaults and other vault platforms like Euler, Nest Credit are coming soon.

For the first time, institutions can allocate to a vault where downside is defined, coverage is enforceable, and settlement is transparent. Catalysis makes DeFi vaults deployable for institutional capital.

About Catalysis

Catalysis is the first onchain infrastructure to natively integrate coverage into DeFi vaults. It makes risk coverage a first-class vault primitive, enabling DeFi protocols to offer vaults and structured yield products with embedded, programmable risk protection backed by restaked capital. 

Today, Catalysis is covering the Gauntlet-curated WETH vault on Morpho with expansions to other protocols coming soon.

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