Decentralized Finance

COVER Price Crashes Following Disperse With Yearn Finance

Author: Sohrab Khawas

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    Decentralized finance portal (DeFi), Yearn has decided to end its merger with the Cover protocol. 

    It’s previously announced merger in the month of November has been called off and Yearn took to Twitter to announce their parting ways. They did not provide a specific reason for the termination but most of the users have backed Yearns decision. 

    Anyhow, yVault depositors who have purchased the coverage remain unaffected. 

    Andre Cronje tweeted that,

    “I personally find it sad. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won’t trust them again.”

    (The above tweet now stands deleted)

    Shortly after deleting the above tweet Andre Cronje, said that it was an emotional response and he kind of mixed ethics and money. 

    Cover protocol is yet to break their silence on the ongoing issue and this breakup has brought a huge loss for Cover. 

    Cover was on a bullish run as it’s price rose from about $380 in the start of the year to around $1700 around two weeks ago. 

    The cryptocurrency is now down by 40% after the news of Yearn finance and Cover protocol broke out. The parting of ways had a serious impact on Cover. 

    On 28 December Cover protocol was hacked and tricked into minting 40 quintillion of its native tokens and also cashed them out. “White hat” hacker Grap finance claimed responsibility for the same and returned the funds which amounted to $3 million. 

    Right after this demerger, Yearn Finance announced a Free-For-All Partnership Program that will be open to anyone who wants to integrate yearn vaults into any products. All partners tend to receive a 50% profit share.

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