Dec 31, 2020
The Future Plans
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. Again, we apologize for this.
Bonus Tokens in Blacksmith Contract
A week after the bonus token program ends, we will be able collect the bonus tokens in the Blacksmith contract. With permission from the protocols, we will add them as new rewards to those protocols’ next expiries. Otherwise, we will return the bonus tokens to the respective protocols.
Once we have finished the work on the snapshots and the new token release, we will revise the rewards contract and work with partners to explore possibilities to provide new rewards before the locked tokens are available.
The New $COVER & Shield Mining
Following the original tokenomics, we had set aside a certain amount from the total supply for shield mining to bootstrap the product. We have spent half of our resources on building out the shield mining mechanism, the UI, frontend, backend, contracts, etc. It is a huge distraction, adds extra risk, and the growth it brings is not organic nor beneficial to the protocol in the long run.
After discussing and gathering feedback from our advisors including Andre, we have decided to completely discard new $COVER shield mining.
With the launch of the new governance token, the total supply will be the amount that is eligible for migration. However, shield mining for bonus tokens will still be active when the revised rewards contract is audited and deployed. Partners will be able to choose our revised shield mining (WIP) mechanism to incentivize LPs for their protocol’s coverage.
This change has 4 major effects:
- The new $COVER supply is no longer under inflation and will be capped at the amount snapshotted at block 11541218 (WIP on exact total amount)
- Protocols will be able to provide rewards to LPs through our UI and revised rewards program
- Coverage will become more affordable due to less market-buying of CLAIM tokens for farming
- The growth of Cover from now on will be purely organic, rather than fueled by mining the native token
The Future Plans for Cover Protocol
The future and progress of Cover Protocol is unimpeded by the exploit.
Our highest priority is to complete the snapshot for all eligible parties and deliver the new token to ensure a smooth transition.
Because our core contracts are unaffected and continue to work as intended, we will continue to onboard new partners. Although there will no longer be mining rewards for $COVER, partners can still reward LPs through their own mechanisms until the revised rewards contract is deployed.
Cover V2 core contracts are almost completed and undergoing internal code reviews. We are also developing further applications that will be built on top of V2.
Security is our number one priority over anything else. We are exploring partnerships with devs and projects. At the same time, we have the following process in place to ensure the security of any future deployed code.
- Extensive testing including
○ unit tests
○ integration tests
○ testnet testing
○ exhaustive edge case testing - Multiple rounds of rigorous internal code reviews
- External code reviews by experienced devs
- Minimum two official audits
This will increase our operating costs, but security is our top priority which will ultimately lead to a more successful protocol.
We are deeply saddened by the situation and appreciate all the support we have received. The community is strong, the team is strong. We believe in the product model, are committed to the vision, and are evermore determined to deliver it.
