What Is a Credit Default Swap (CDS) and Is There a Crypto Equivalent?
A Credit Default Swap (CDS) is a financial derivative that acts as insurance against the default of a borrower. While a direct, regulated crypto CDS equivalent for a specific token issuer is rare, decentralized insurance protocols offer similar protection.
Users can buy coverage against smart contract exploits or stablecoin de-pegs, which serves a comparable risk-transfer function.