We apologize again for the situation and all who were affected. We want to thank everyone who has been helping us in any way, whether technically or with the community. We are grateful for all you have done for us and for the community that stood by our side.

Unclaimed Rewards

Since we had to remove the minting rights from the Blacksmith contract to stop the exploit, it is impossible to claim any unclaimed rewards now.

The farming contract has been compromised with large exploited unclaimed rewards. Therefore, we will not be able to honor any unclaimed rewards. …

The snapshot will be taken at block 11541218, one block before the first major exploited mint.

All below eligible parties and data are determined by the snapshot above.

Parties that are eligible for the new $COVER token

• COVER-ETH liquidity providers on Uniswap
• COVER-ETH liquidity providers on SushiSwap
• COVER-ETH liquidity providers on Balancer
• All $COVER token holders (holding in wallet + CEXs)
• All $YETI token holders
• All $YPIE token holders
• All unmigrated SAFE2
• All unmigrated SAFE

For COVER-ETH liquidity providers, $YETI, and $YPIE token holders, we will determine the amount of $COVER paired with 1 LP token to determine each address’ COVER “balance” and reward this amount of new $COVER token. …

Summary

On Dec-28–2020 at 08:08:12 AM +UTC an exploit was abused on Cover Protocol’s shield mining contract (Blacksmith). The core Cover Protocol product is not affected and is functioning as intended. This exploit only affected the mining contract and the $COVER token.

What was the root cause?

The Bug

As many have explained, this line of code caused the updating of the pool state to be ineffective on the miner’s state when depositing. This misalignment will cause the Blacksmith to mint more rewards to the miner. …

As of 12/15/2020 @ 11:45 pm UTC, $SUSHI tokens have been accumulating for the COVER-ETH pool. It will end at 3/15/2021 as of the current proposal. We will add the rewarded SUSHI tokens as a bonus token for the COVER — ETH shield mining pool in sessions.

During each session, all the SUSHI rewards will be distributed to the pool automatically like all other bonus token rewards. You will have 7 days to claim your SUSHI rewards after the end of the session. Once 7 days have passed, the SUSHI rewards will be reset to 0. This is to allow the next session to start.

Sushi Session Schedule

What you need to do?

Nothing. Except to claim your SUSHI rewards before the end of the claiming time for each session.

-The Cover Team

Cover Community,
Thank you so much for your ongoing support as we build out our vision. We are excited to announce the launch of our governance portal. You will be able to help shape Cover Protocol through proposals and gauge voting.

Governance through CIPs

First, any community member can make a proposal (CIP) (Cover Protocol Improvement Plan) by creating a new topic on forum.coverprotocol.com, following the format here. The proposal will be discussed and voted on prior to being uploaded to Snapshot.

Second, if the proposal has gained enough traction and has positive sentiment, the proposal creator can contact a team member to have it added to snapshot.page as a core proposal. …

Since our launch over 2 weeks ago, we now have over $24 million of coverage minted across 14 DeFi protocols! In this time, we have observed some unintended economic effects that have affected the price of coverage, mainly the price of coverage is too expensive. Most, if not all, CLAIM tokens annually cost more than 20% to buy, which is a direct effect of the lucrative shield mining rewards.

The Problem

Shield mining is rewarding the CLAIM/DAI Balancer pool with too much $COVER, which in turn, drives users to market-buy CLAIM covTokens with the sole intention to shield mine, raising the cost of coverage. …

Since our launch on Thursday, a lot has happened and we have observed some unintentional side effects from shield mining that has caused some distortion in the prices of the CLAIM and NOCLAIM tokens.

Currently, the coverage price (CLAIM token price) is generally high. This is mainly due to the high rewards (500+%) from shield mining in the CLAIM pools.

Example:

1. You spend $0.1788 buying one Curve CLAIM token
2. You use the purchased CLAIM token to mine COVER token
3. You earn $0.1994 of $COVER by expiry (using current Curve CLAIM pool APY of 223%)
4. In the end, assuming the CLAIM token expires worthless, not only will you get the coverage for free, but actually profit $0.0206 (~12% of $0.1788) by purchasing the coverage (Curve CLAIM…

Claim filed on: Pickle Finance
Date of claim: 11/21/20
Status: Validated by Community and the CVC
Payout Percentage: 100%
Claim payment: $282,035
Fees to be earned: $282 (from redemption)
TVL in Pickle CLAIM token at time of accepted claim: $282,035
Payout turnaround time: 5 days (including the 2 day redemption delay)
*Compared to the industry average payout turnaround of 12.3 days.

We would like to give a huge thanks to our community for their fast response in voting and their input. Cover Protocol belongs to the community. This protocol can not succeed without the community. Our CVC did an amazing job with communicating with us throughout the whole process from building to launch to their first claim evaluation. They were super responsive and gave great in depth insight on the claim. We see this as a giant step towards a new way of governing claims and mitigating risk. …