In our recent report on Nexus Mutual, we discussed how important smart contract insurance is for the DeFi sector, particularly as TVLs continue to rise. While Nexus is a useful tool for hedging the technical risk that market participants are exposed to, there are other forms of risk in need of mitigation as well. With this train of thought in mind, and understanding the important role DAOs will play in the years to come, we were attracted to the potential of Aragon Court. Nexus might be the market leader for insuring technical risk, but Aragon Court could be primed to fill a similar niche role by insuring governance risk.

Aragon Court doesn’t just provide a safety check though, its mere existence opens the door for a wide new range of functionality that previously was not possible. By providing independent Dispute-Resolution-as-a-Service, DAOs can implement subjective contracts, improving their operational efficiency and activity. While still under the radar, we see the Court as the most important piece of Aragon’s stack, creating a common ground that will enable DAOs to move from disparate, self-sovereign silos to a network of interconnected members making up the world’s first digital jurisdiction.

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