DeFi Insurance Protocol Coverage Closes, Token Value Collapses

“It is with mixed emotions that I announce the end of the RULER & COVER protocol,” said DeFi Ted. today while silencing the troubled DeFi insurance project.

” decision to do this was not an easy one and it is a final decision made by the remaining team after examining the way forward, after the major developers suddenly abandoned the projects,” continued Ted. He advised clients to withdraw funds from hedging protocols “as soon as possible.”

cover story has dropped $ 45 from Ted’s ad, from $ 269 to $ 224. Daily trading volume jumped from $ 3.5 million to $ 19 million as traders grappled with the news.

Founded about a year ago, Cover created a decentralized marketplace for investors in decentralized financial protocols. By locking the tokens on Cover as collateral, users received tokens that would cover them in the event that a DeFi protocol they had invested in was hacked, exploited, or exploited. value of these tokens depended on the risk of the smart contract.

Cover’s collapse follows an infinite minting hack in December 2020 that left its clients heavily exposed for their insurance policies and investors in the COVER token on top and dry.

hacker returned the stolen 4350 ETH, attaching the message “Next time, take care of your shit” to the transaction. Cover redistributed the funds to its clients, but the token’s value fell 96%.

cover also lost some of its influence after a high-profile Yearn Finance divorce from Andre Cronje. Yearn cut ties in March after partnering with the protocol in November 2020.

DeFi Ted said today that the team plans to distribute the remaining treasury funds to token holders. “This is effectively a creditor payment, we will not continue with the RULER & COVER token or contracts and the user interface will remain closed.

“ clearing will start from the block number 13162680, this will be used as a snapshot to distribute funds to the holders of the treasury. founders, myself included, will not participate in this. “

Other DeFi insurance protocols, such as Nexus Mutual and Opium Insurance, could close the gap.

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