Cover Protocol V2 Mainnet & BSC Dual Launch

Cover Pools

Four pools will be launched on ETH Mainnet.

  • 1 Ruler CDS pools for selected Ruler Pairs
  • 1 BoringDAO pool for its products
  • 1 YearnV2 pool for some of its larger vaults
  • 1 stablecoin pool for popular stablecoins

Rewards for Cover V2

There will be airdrop rewards for liquidity providers of certain Cover Pools via partner incentives. The rewards will be based on the amount of liquidity a user provides in the orderbook scaled by how far away from the market price the order is and weighted by time the order is open.

How to Make a Return As a Provider

As a provide, you make a return by

  • Mint covTokens with Dai
  • Selling cTokens on the order books.
  • You only pay gas to mint the coverage and redeem your initial DAI back at expiration. The buyer of coverage pays the gas fee on the sale.

YearnV2 Example:

Let’s say you have 100k Dai, and want to invest it. You are pretty confident in Yearn’s smart contract(s). You would do the following:

  1. Mint 100k Dai worth of covTokens that expires by the end of July. In return, you would receive 100K of each cToken, one ncToken and one FUTURE cToken
  2. Keep the ncToken and FUTURE cToken (Read here to understand what those tokens are).
  3. Sell the 7 different cTokens you minted (you have 100k of each).
    a. Sell each cToken for 3 cents
    b. You will get an upfront premium of $21,000.
    c. If Yearn is not exploited before expiry…that is an 84% annual return.

Appendix — Cover Pools Details

RulerCDS1

Expiry: 2021_5_31
Risks for the pool:

  • WBTC lending
  • WETH lending
  • WETHDegen lending
  • xRULER lending
  • xRULERDegen lending
  • xCOVER lending

BoringDAO

Expiry: 2021_7_31
Risks for the pool: TBD

YearnV2

Expiry: 2021_7_31
Risks for the pool:

  • WETH Vault
  • ETH Vault
  • YFI Vault
  • WBTC Vault
  • DAI Vault
  • USDC Vault
  • USDT Vault

Stables

Expiry: 2021_7_31
Risks for the pool:

  • USDC peg
  • USDT peg
  • DAI peg peg
  • USDN peg
  • USDP peg
  • UST peg
  • BUSD peg
  • GUSD peg

BSC Pool

Expiry: 2021_5_31
Risks for the pool:

  • Pancake
  • Bunny
  • Autofarm
  • Ellipsis
  • Venus

Find a Bug?

Report to the devs of Cover through admins of Discord and Telegram. You will be rewarded generously based on the impact of the bug.

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