Yearn merges with Cover to provide insurance coverage for Yearn products and DeFi industry

With this partnership, Yearn can focus on its best-in-class vaults, while Cover becomes the backstop coverage provider for the Yearn products and DeFi industry.

By · Nov 28, 2020 . 5min read

Yearn merges with Cover to provide insurance coverage latest news

Andre Cronje, the inventor of the Yearn protocol, has made an official announcement on the merger between Yearn and Cover Protocol.

With this partnership, Yearn can focus on its best-in-class vaults, while Cover becomes the backstop coverage provider for the Yearn product suite, as well as for DeFi as a whole.

As the Cronje’s publication highlighted, Yearn Finance has been working with Nexus Mutual, which provides insurance cover for smart contracts. That concerned its yInsure project meant to provide cover for yVaults.

With Yearn’s bonding with Cover, an Ethereum Protocol, the latter can now help provide a wider range of coverage which makes Yearn fitting to accept different types of collateral.

Additionally, Cover products like perpetual coverage will get an expanded addressable market. Subsequently, with its expansion into newer money market domains, it offers CLAIM token as collateral & borrowable asset.

Perhaps the most important aspect of this merger is that Yearn gets coverage for vaults and can offer users a reduced risk product. And obviously, Yearn can now focus on its core propositions – Vaults and Lending. Meanwhile, Armore may now take over yInsure (and yNFTs).

Conclusively, YFI cover writers will earn increased fees from YFI coverage they underwrite.

Cover v1.1 set to be released as it merges with Yearn.

Cover Protocol launched in September during the height of the DeFi boom. Version 1.1 will come with an array of improvements. The first of the improvements is that it will be protocol agnostic. It means other protocols can create their own coverage on Cover. Consequently, other communities can stake and protect their own systems.

Cover users will be able to enjoy perpetual coverage using the protocol, i.e. coverage protection without expiry. Consequentially, Yearn LP will benefit from Cover’s perpetual coverage. Lastly, v1.1 allows other DeFi protocols to create their own coverage without additional overload.

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