Cover Protocol Price Today
The price of Cover Protocol (COVER) is $0.531739 today with a 24-hour trading volume of $245.07. This represents a - price increase in the last 24 hours and a - price increase in the past 7 days. With a circulating supply of 79 Thousand COVER, Cover Protocol is valued at a market cap of $42,102.80.
What is COVER?
Cover is the governance token for Cover protocol. It also plays a vital role in the claim management process.
What is Cover Protocol?
Cover Protocol is a peer-to-peer insurance market, where the way it operates is more similar to prediction market. Unlike other insurance protocols, the governance token is not used for underwriting risk.
To bootstrap coverage for a new protocol, market makers will need to be incentivized to stake collateral of DAI/yDAI to mint CLAIM and NOCLAIM tokens. All series covers a specified protocol and have a specified expiry date. During the expiry date, either CLAIM or NOCLAIM will have the full claim to the collaterals.
For example, if 100 DAI is used to provide coverage for Compound protocol until an expiry date, it will yield 100 CLAIM and 100 NOCLAIM tokens. On the expiry date, if there is a valid claim event, every CLAIM token will receive 1 DAI while NOCLAIM token will expire worthless. The converse is true if there is no valid claim event. In this case, every NOCLAIM token will receive 1 DAI while CLAIM token will expire worthless.
Who are the users of the Cover Protocol?
Users of the protocol can be split into 3 types - Market Maker, Coverage Provider, and Coverage Seeker.
Market Maker (MM)
A MM provides liquidity in both CLAIM and NOCLAIM tokens against DAI/yDAI. This is done in Balancer pools and ensures that coverage tokens are liquid and accessible for the market. MM mainly earns trading fees from the pools and earns the shield mining rewards. Shield mining rewards refers to the extra rewards offered by either the Cover protocol itself in terms of COVER tokens or the covered project’s native tokens to increase liquidity.
MM provides an important service as without them, the coverage tokens would be very illiquid which makes it difficult for people to purchase coverage and stay protected.
Coverage Provider
A coverage provider is a participant who deposits collateral to mint NOCLAIM/CLAIM tokens and sells their CLAIM tokens on the market. A coverage provider would do this if they are confident in the security of the protocol. Coverage providers can be the protocol themselves seeking to make coverage cheaper for their users by lowering the price.
Currently only smart contract risk is covered.
Coverage Seeker
A coverage seeker is a user that wants to buy insurance or coverage for a smart contract protocol. To seek coverage, users may follow these steps:
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Choose the protocol to have a cover on.
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Choose the CLAIM token. There is always only one active CLAIM token for each expiration date. Click the BUY button on the specific expiration date.
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After clicking the buy button it will be redirected to Balancer Swap. This is where users will swap DAI/yDAI for the specific Coverage Token. Each CLAIM token is eligible up to 1 DAI/yDAI in the event of an accepted claim. So if the user wants to have a coverage amount of $100, purchase 100 CLAIM tokens. Click Swap.
How is the coverage priced?
The price of cover (CLAIM token) is based on the price quoted in the Balancer pool, subjected to supply and demand of the CLAIM and NOCLAIM tokens in the Balancer pool.
How to claim?
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Select the protocol to file a claim against.
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Choose the Date and Time the incident occured (Must be within 3 day prior).
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There are two options:
- Regular claim: A regular claim which is 10 DAI and multiplies each time a claim is submitted by any user. This will go to the community to vote on and if valid will move to the Claim Validity Committee (CVC) for a final decision.
- Force claim: A force filed claim can be submitted for 500 DAI and this will be sent to CVC directly for a decision and bypass the community voting. CVC is formed by smart contract auditors.
The fee for the regular or force claim will be refunded if the claim is approved.
Has Cover ever paid out claims before?
Yes! In the case of the hack of Pickle Finance in Nov 2020, a total of 282,035 DAI was redeemable for the CLAIM token purchased.
Can I buy the cover without KYC?
Buying the CLAIM token through Balancer protocol does not require KYC.
Notable Events
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Yearn and Cover announced a merger (partnership) on 28 November 2020.
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Cover was hacked in December 2020 in an infinite printing scheme. The exploiter has cashed out over $4 million including about 1,400 ETH, one million DAI and 90 WBTC. The attacker earlier created 40 quintillion COVER tokens and sold $5 million worth of them. More than $3 million has been returned.
Where can you buy Cover Protocol?
COVER tokens can be traded on decentralized exchanges. The most popular exchange to buy and trade Cover Protocol is Sushiswap, where the most active trading pair COVER/WETH has a trading volume of $250.51 in the last 24 hours.
What is the daily trading volume of Cover Protocol (COVER)?
The trading volume of Cover Protocol (COVER) is $245.07 in the last 24 hours, representing a 0.00% increase from one day ago and signalling a recent rise in market activity.
What is the all-time high for Cover Protocol (COVER)?
The highest price paid for Cover Protocol (COVER) is $1,687.11, which was recorded on Feb 17, 2021 (almost 3 years). Comparatively, the current price is - lower than the all-time high price.
What is the all-time low for Cover Protocol (COVER)?
The lowest price paid for Cover Protocol (COVER) is $0.311133, which was recorded on Nov 14, 2023 (21 days). Comparatively, the current price is - higher than the all-time low price.
What is the market cap of Cover Protocol (COVER)?
Market capitalization of Cover Protocol (COVER) is $42,102.80 and is ranked #3489 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of COVER tokens (79 Thousand tokens are tradable on the market today).
What is the fully diluted valuation of Cover Protocol (COVER)?
The fully diluted valuation (FDV) of Cover Protocol (COVER) is $43,602.59. This is a statistical representation of the maximum market cap, assuming the maximum number of 82 Thousand COVER tokens are in circulation today. Depending on how the emission schedule of COVER tokens are designed, it might take multiple years before FDV is realized.
How does the price performance of Cover Protocol compare against its peers?
With a price increase of 0.00% in the last 7 days, Cover Protocol (COVER) is underperforming the global cryptocurrency market which is up 7.60%, while underperforming when compared to similar Ethereum Ecosystem cryptocurrencies which are up 12.70%.
What is the market sentiment of Cover Protocol today?
There are no votes on Cover Protocol (COVER) today. Be the first to vote and share this with your community.
How to add Cover Protocol (COVER) to MetaMask?
Adding Cover Protocol (COVER) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import COVER as a token. You can copy COVER’s contract address (0x4688a8b1f292fdab17e9a90c8bc379dc1dbd8713) and import it manually, or if you've installed MetaMask's chrome extension, add COVER to MetaMask with one click on CoinGecko.
Add COVER to MetaMask.
