What is Cover-protocol?

Cover Protocol is a peer-to-peer coverage market that allows DeFi users to be protected against smart contract risk. It stabilizes the turbulent DeFi space by instilling confidence and trust between protocols and their users. By bridging the gap between decentralized finance and traditional finance, Cover Protocol will open the doors of DeFi to all investors.

Cover Protocol provides peer-to-peer coverage with fungible tokens. It lets the market set coverage prices as opposed to a bonding curve. The process starts when market makers (MMs) deposit collateral to cover a product. MMs will receive two types of fungible cover tokens in exchange for their deposit. MMs can choose to sell the fungible token(s) to earn a premium, or provide liquidity in Balancer pools with the fungible token(s) and earn fees. Coverage seekers can then buy the coverage they need.

The long term vision for Cover Protocol is to allow anyone to buy coverage on anything.

How to use Cover-protocol?

The main Cover Protocol interface allows users to view the marketplace for coverages we support, mint coverage, buy and sell covers, as well as participate in shield mining.