Traditional Credit Default Swaps (CDS) are great in theory: you pay a fee, and if a loan defaults, you get paid out.
In practice, traditional finance turns this into a nightmare of endless paperwork, legal delays, and counterparty risk. You're left guessing if the company holding your insurance will even have the cash to pay you when crisis hits.
On-chain CDS fixes this with smart contracts:
• Automated payouts: Funds trigger instantly if a default happens.
• No paperwork: Zero manual claims, lawyers, or administrative headache.
• True transparency: Solvency is backed by capital locked in code, not hidden on an opaque balance sheet.
At SPICE, we built this directly into our private credit setup through Principal Protection. Investors get clear, automated default protection right alongside their allocations.
Automated solvency is just the start.