Launch of Cover Protocol
The Cover Protocol Team would like to thank you for the tremendous and unparalleled support thus far. With that being said, we are proud to announce that Cover Protocol is officially launched! You can mint, redeem, and purchase coverages for the supported protocols on the app.
$COVER (the governance token) will be released on November 20th, along with shield mining and migrations. Exact time of TGE will be announced 2 hours prior along with deployed contracts addresses. You can find all the details below.
Supported Protocol Coverage
After careful consideration, and insight from the community, we have chosen a list of protocols of varying risks to launch. Our smart contracts allow for quick and seamless adding of new protocols (will be determined on a case-by-case basis).
- There is no fee to mint coverage tokens.
- There will be a default 0.1% (changeable by governance) fee charge on all redeems.
- The Balancer pool for CLAIM and NOCLAIM tokens will have a 1–2% fee (depending on the risk) on swaps.
Claims Process and Payout
- There will be a default 3 day grace period after expiry to make a claim on an incident that occured before the expiry of a specific coverage.
- When no claim is accepted there will be a default 10 day delay for redemption of NOCLAIM tokens.
- When a claim is accepted there will be a default 2 day delay for CLAIM tokens (and NOCLAIM tokens if partial payout).
These delays are to ensure that the community and the CVC have ample time to investigate any claim activity. Details can be found on claims guides from the website.
The COVER Token and Migrations
On November 20th, $COVER will be released; migration will start.
The exact token distribution can be found here. In our original plans, we had a tentative amount of 55,000 $COVER to be migrated. However, the amount of $COVER eligible in the snapshot for claiming (for those who missed the $SAFE =>$SAFE2 migration) was lower than expected by 150 tokens. For now, this difference of 150 $COVER will be minted to the treasury and we will hold a vote for $COVER holders to decide on what we do with these tokens.
On release, $SAFE2 holders can migrate to $COVER while those who missed the $SAFE -> $SAFE2 migration will be eligible to claim a partial amount of their snapshotted balance. There will be a MIGRATE button on the left bottom of the side nav.
You will be able to migrate all your $SAFE2 to $COVER as well as claim all eligible $COVER from the snapshot. There is no deadline to migrate.
Shield mining will start on November 20th (exact time will be announced 2 hours prior).
Over the next 6 months, there will be approximately 17,000 $COVER allocated to the shield mining program. This means there will be 654 $COVER distributed each week for mining.
- 80% of the 654 $COVER will be allocated to the above supported protocols.
○ 60% of the 654 $COVER will go to $CLAIM liquidity providers.
○ 20% of the 654 $COVER will go to $NOCLAIM liquidity providers.
- 20% of the 654 $COVER tokens will be allocated to Pool 2 liquidity providers. More details will be released at $COVER launch November 20th.
- Some pools may also be incentivized by the covered protocols, through offering their own native protocol tokens as bonus rewards.
You must stake your liquidity pool token in the Cover Protocol shield mining portal to participate in the shield mining program for all pools.
Each protocol will get a specific allocation at launch. The allocation is preassigned (see mining weight on the supported protocols table), and can be adjusted. The rewards are calculated based on the pool’s allocation, total staked, and staked time.
Governance and Decentralization Plan
We are aiming to transition Cover Protocol towards being completely decentralized and governed by $COVER holders. In order for the transition to go smoothly, there will be 3 phases of governance changes. We will release more details on the phases at a later time. Here is the draft of the 3 phases:
Phase I will start on December 15th, 2020. $COVER holders can make proposals here and can vote on snapshot. Once a proposal is approved, the governance multi-sig (held by the 6 team members) will execute the proposal on behalf of the holders.
Phase II will be the launch of our decentralized governance system to allow $COVER token holders to submit proposals on-chain and lock their tokens in order to vote.
The voting decision of the proposal will be executed on the Cover Protocol contracts, including core, claim management and mining contracts.
Phase III is the end goal for the Cover team — full decentralization. A comprehensive governance module will be built. $COVER holders will be the owner/admin of all deployed contracts from Cover Protocol.
Protocol Factory: 0xedfC81Bf63527337cD2193925f9C0cF2D537AccA