Embattled insurance project Cover Protocol has shut down, according to a Sept. 5 announcement made by core contributor “DeFi Ted.”
Its remaining treasury funds will be distributed among token holders.
Members of the community are being urged to withdraw their funds from the protocol as soon as possible since developers will no longer maintain the user interface (UI).
The closure comes after the development team suddenly left the project. While expressing his disappointment with the devs, “DeFi Ted” is also certain that the future looks bright for them:
This being said, we want to wish the development team all the best in their endeavors outside the crypto space and to the community we want to say that while this is all we can do from a treasury standpoint with what is available, we won’t forget you either.
The COVER token is currently down 13 percent, according to data provided by CoinMarketCap.
The Yearn Finance divorce and the infinite mining hack
Cover Protocol gained prominence after merging with Andre Cronje’s Yearn Finance, one of the leaders in the DeFi space in November. The two projects, however, announced that they would no longer operate together in early March without specifying the reason behind the divorce.
In late December, Cover suffered an infinite mining attack. As reported by U.Today, a rogue actor managed to create 40 quintillion tokens, which made the price of COVER collapse by more than 96 percent in practically no time.
Fortunately for Cover, the attacker turned out to be a white hat who returned all liquidates funds. The team later came up with a compensation plan for holders.
Denys Serhiichuk
Yuri Molchan
Tomiwabold Olajide