Skip to main content
AVOID.NET
Sign in

Cozy V2

avoid.net/cozy-v2→42/100·72% conf.
[AI-DRAFTED · AWAITING VERIFICATION][src:defillama]

Auto-generated score, not yet verified against the scoring model. Under review — treat as indicative, not a verdict.

anchored·31xUDY…VoMR

Summary

Cozy V2 is a DeFi protection marketplace deployed on Optimism that allows users to buy or provide protection against smart contract hacks, depegs, and other on-chain risks. On August 29, 2025, the protocol suffered a $427,000 exploit caused by a missing caller verification check in its withdrawal logic, with funds subsequently bridged to Ethereum mainnet and deposited into Tornado Cash. The incident is notable for its irony: a protocol designed to insure against DeFi hacks was itself hacked through a preventable authorization flaw.

Connected Entities

6 entities · 60 linked investigations
Organizations
□Ethereum64□Cozy V2□ZachXBT82□Optimism60
Protocols
⌂Euler Finance58⌂Cozy Finance
Relationships
  • ZachXBT→mentioned with→Ethereum(70%)
  • Optimism→mentioned with→Ethereum(80%)
  • Euler Finance→mentioned with→Ethereum(80%)
  • Cozy V2→mentioned with→ZachXBT(65%)
  • Cozy V2→mentioned with→Optimism(70%)
  • Cozy V2→mentioned with→Ethereum(80%)
  • Cozy Finance→mentioned with→Optimism(80%)
  • Cozy Finance→mentioned with→Cozy V2(75%)
  • Cozy V2→mentioned with→Cozy Finance(80%)
  • Cozy V2→mentioned with→Euler Finance(80%)
Also appears in
Ethereum·64Lendf.me·30Levyathan·18Jump Trading·42StableMagnet·2Shibarium·28Dean Daghita / CMDSS (Command Services and Support)·0Bankr·18Nexera·32SafePal·42+ 50 more
Have evidence about Cozy V2?
0
Accepted
1
Under review
0
Rejected / revoked

Community submissions

Timeline(8 events)

3 September 2020

Cozy Finance announces $2M seed round led by Electric Capital; founders Tony Sheng and Payom Dousti publicly named.

September 2021

Cozy Finance V1 launches on Ethereum mainnet as an open-source protection market protocol.

13 March 2023

Euler Finance hacked for approximately $200M. Cozy V2 early-access Euler Finance market triggers and pays out to Protection Buyers, validating core trigger logic.

2023

Cozy V2 launches on Optimism (OP Mainnet) with redesigned permissionless protection marketplace architecture; V1 subsequently sunset.

28 August 2025

Victim initiates redemption of approximately $376,661 (redemption ID 6) on Cozy V2 on Optimism.

29 August 2025

Attacker exploits missing caller verification in `completeWithdraw` function, redirecting victim's redemption proceeds to attacker's address. Total loss reaches approximately $427,000.

30 August 2025

Decurity publicly reports the exploit on X, noting attacker bridged funds from Optimism to Ethereum mainnet and deposited into Tornado Cash.

30 August 2025

Verichains publishes detailed technical post-mortem of the Cozy Protocol incident, classifying the root cause as insufficient sender verification.

Provenance & Audit Trail
Anchored on SolanaVerify on-chain5 Wayback Archivessrc:defillama

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (2 events). 5 of 10 cited source URLs have an Internet Archive snapshot.

full audit log →version history →

model: claude-sonnet-4-6

generated: 5/4/2026, 2:54:21 AM

last updated: 9/15/2026, 5:10:50 PM

7 views

avoid.net — verified advice for a post-truth world