Protocol Architecture
How LayerCover works under the hood
TL;DR: LayerCover is an on-chain Lloyd's of London - autonomous smart contracts coordinate risk, capital, and claims without intermediaries.
This section explains the how and why behind LayerCover's design. For practical guides, see Policyholders, Underwriters, or Developers.
System Architecture
Core Contracts
| Contract | Purpose |
|---|---|
| PolicyManager | Mints policies, manages lifecycle, validates claims |
| CapitalPool | Holds underwriter capital, manages solvency |
| IntentMatcher | Matches buyer and seller intents atomically |
| RiskManager | Risk ratings, incident reporting, pool pausing |
| PoolRegistry | Registry of all risk pools and their parameters |
| PayoutManager | Executes claim payouts via liquidity waterfall |
| RewardDistributor | Routes premiums to underwriters |
| Syndicate | Managed vault for passive LP underwriting |
Deep Dives
🏛️
How Cover Works →
The insurance model and Lloyd's analogy
💲
Pricing →
Fixed-rate intents and the RFQ system
📊
Payout Waterfall →
Exact live claim funding order, reinsurance branch, and debt handling
🏦
Capital Pool →
ERC-4626 vault, yield adapters, solvency
🛡️
Backstop Pool →
Backstop Pool and the liquidity waterfall
⚖️
Governance →
Committee system, staking, and delegation
🧩
Permissionless Pools →
Pool creation policy, validation hooks, and safeguards
📝
Contract Interfaces →
Full interface reference for all contracts