Cover Protocol: a peer-to-peer coverage market

Quick Take

  • Cover Protocol is a decentralized market that offers pseudo-insurance against DeFi exploits
  • Coverage seekers buy protocol-specific CLAIM tokens to get covered, whereas underwriters buy NOCLAIM tokens to earn premiums, and prices are market-driven
  • They have undergone a series of controversies and the market sentiment is mixed
The total value locked (TVL) on Ethereum-based DeFi protocols has skyrocketed from 2020, reaching an all-time high at $48.76 billion this month. This rapid growth caught the attention of bad actors who try to profit from exploiting vulnerabilities in smart contracts. The Block Research estimated more than $120 million was exploited from DeFi smart contracts […]

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