Sherlock operates a competitive marketplace that connects DeFi protocols with a decentralized network of top-tier security auditors (known as "Watsons"). Its primary mission is to secure the Web3 ecosystem by making smart contract audits more effective and affordable. Beyond audits, Sherlock also provides smart contract coverage, a type of insurance policy that protects protocols against financial losses from smart contract exploits, with payouts backed by a pool of capital from stakers. This dual-service model aims to both prevent and mitigate the impact of security vulnerabilities.