Introducing Cover Protocol Credit Default Swaps (CDS), a new DeFi coverage product that will expand on the smart contract coverage offering already available through Cover. This new product is the first of what will be a series of coverage products that we will provide to support a future undercollateralized DeFi ecosystem.

What is a Credit Default Swap?

As you may be aware, the Credit Default Swap is the financial tool Michael Burry used to short the mortgage CDOs in 2007, made famous by the movie “The Big Short”. In essence, a CDS is a contract that gives the holder the right to a payment if a…


Overview

Cover Protocol’s long term vision has and always will be to allow anyone to buy coverage on anything. Cover Protocol V2 (Cover V2) takes us one step further towards that vision.

Cover V2 improves upon multiple aspects of V1 in the following ways:

  • Addresses concerns raised from V1, including capital efficiency and granular coverage.
  • Expansion into real world risky asset coverage (phase 1: natural disaster coverage).
  • Open the doors for projects to provide coverage of their products at point of interaction by their end users and create their own coverage markets.

The fundamental model of Cover remains unchanged. It still…


Dear Community and Cover Protocol Users,

We have on-boarded and updated several protocols and expiries today.

  • All new coverages will have Flash Coverage Swap support. You can read the user guide here (v1.0.1).
  • The new coverages with bonuses will start at 2/22/2021 12am EST (in ~30 mins from now).

All new coverages will use Dai instead of yDai (to reduce gas costs).

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If you want to farm the above pools, please read the following carefully!

Farming as a Current Cover Farmer

No action required if you don’t plan to farm the above pools.

To farm the new pools,

  • Withdraw from Bonus Rewards
  • Remove Liquidity from the…

Hello everyone,

We are very excited to announce there will be a substantial improvement to the liquidity model of our coverage tokens. By taking advantage of flash loans and our binary token system, we are able to eliminate our 2 balancer pools, replacing them with a single 50/50 NOCLAIM/DAI pool.

Note: this change only relates to the balancer pools and will only affect newly launched protocols/expiries after today. The fundamental fungible tokens model of Cover V1 has NOT changed. This is not Cover V2.

Benefits of Flash Coverage Swaps

Using a single 50/50 NOCLAIM/DAI pool is a large improvement over our previous dual pool model…


Claim filed on: BT.Finance

Date of claim: February 8th, 2021

Collateral staked at time of accepted claim: 115,281 DAI

Status: Validated by Community and the CVC

Payout Percentage: 60% of $140,906 (Partial payout)

  • 1 CLAIM token = 0.60 DAI
  • 1 NOCLAIM token = 0.40 DAI

Payout turnaround time: 8 days (including the 2 day redemption delay)

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…


Claim filed for: Yearn Finance
Date of claim filed: February 4th, 2021
Collateral staked at time of accepted claim: 409,722 DAI
Status: Validated by the community and CVC
Payout Percentage: 36% (Partial payout)
• 1 CLAIM token is redeemable for 0.36 DAI
• 1 NOCLAIM token is redeemable for 0.64 DAI
Payout turnaround time: 7 days (including the 2 day redemption delay)

We would like to give a huge thanks to our community for their fast response in voting and their feedback. Cover Protocol can not succeed without the support of our awesome community. Our CVC did an amazing job…


Hello COVER Community,

The COVER (new) token(s) can now be claimed. Please refer to the compensation plan in the Medium post to see if you are eligible to claim COVER (new) token(s).

The following claim options are available:

  1. SAFE: under the COVER tab — 1 SAFE = 0.9 COVER (new)
    Only SAFE held prior to Oct 1st 12:00AM UTC is eligible
  2. SAFE2: under the SAFE2 tab — 1 SAFE2 = 1 COVER (new)
  3. COVER: under the COVER tab — 1 COVER (old) = 1 COVER (new)
    Please refer to the compensation plan in the Medium post regarding the snapshot
  4. WETH: under WETH tab (please claim within…


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…


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. …

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