The developer and founder of Cover Protocol announced a set of brand new features that will be introduced in an upcoming version of the project.
Working under the names of ‘ChefCoverage’ and Alan, the developer, presented five never seen before updates to the community in a Twitter post on January 10.
Cover Protocol, which now works together with Yearn Finance in a unique DeFi ecosystem, is considered to be one of the best coverage platforms in the market. Although, the first version of the project merely represents the start for coverage insurer enthusiasts as we expect more innovative features to come.
As developers have completed the initial stage of Cover Protocol, they are now looking to completely overhaul the project. So far, the community had no idea what to expect in the new version as developers work quietly without announcing any information. However, the situation changed as Alan revealed a set of five important changes on Twitter.
Alan shared that users will have the ability to create specific and isolated risks within individual projects. For example, each Yearn vault will have its own covToken coverage. The second feature includes bundled protocols, which users can utilize for coverage purposes.
Furthermore, the main developer announced amplified liquidity and dynamic fees. The Cover Protocol team also intends to expand into real-world coverage. Per the post, developers currently discuss the prospect with a number of CVC groups.
In a separate post, Alan also shared that users can now redeem the first set of coverages for collateral on the Cover Protocol app. Users can claim covTokens for the following platforms: BasisCash, Boring DAO, Cream Finance, Harvest Finance, and Ren Protocol. He notes that eligible users can redeem each token for one DAI.
Cover Protocol survives December exploit
Cover Protocol recently launched a new token on January 5 as a response to a hack that affected user assets. On December 28 then-anonymous individuals carried out an exploit that attacked the token-minting function of COVER. The final result is that the exploit led to the creation of 40 quadrillion new COVER tokens.
On the same day of the hack, developers of another DeFi protocol called Grap.Finance revealed that they have been the ones to perform the attack. Furthermore, Grap quickly returned the assets obtained from Cover Protocol’s liquidity pools sharing a transaction hash as the proof.
The community had mixed opinions when reacting to the event. While some individuals applauded the Grap developers for conducting the hack, others stated that Grap essentially saved Cover by pointing out the exploit. If others have discovered the exploit it would be implausible for them to return the assets as Grap Finance did.
For a brief moment, the value of the GRAP token increased by more than 4,500%. However, the token’s price quickly plunged down as the low trading volume could not support high prices. We do note that GRAP nevertheless still increased by 527% in the last 30 days.
The exploit should serve as a good reminder as to how DeFi developers should behave in the future. Smart contracts are prone to having coding mistakes.
Skillful individuals can always discover a way to hack projects in this market. If the developers themselves are not careful and meticulous, they risk assets worth millions of dollars.