Cover Protocol, a decentralized finance insurance project, announced it would close after the departure of its core development team. Ruler, a related lending service, is also shutting down.
Against the background of the announcement, the COVER token rate fell by 16%. If earlier the token was traded at $ 269, now its rate is $ 221. At the same time, trading volumes increased several times. The RULER token collapsed by 87% at once.
One of the developers of Cover Protocol, alias “DeFi Ted”, said that the decision was difficult. He urged all token holders to withdraw funds from both protocols, since no one supports them now, and the stability of the interface may be at risk.
“We made this decision after the core development team suddenly left the project. We discussed the situation with the remnants of the team and decided that the funds remaining in the vaults would be distributed among the holders of the token. I was extremely disappointed with such a sudden departure of the developers, especially after all the time that we spent on the creation of the protocol, ”writes DeFi Ted.
Recall that the Cover Protocol project appeared last year and allowed COVER tokens to be used as collateral to provide insurance against the loss of investments in DeFi projects.
Late last year, Cover Protocol was hacked. The hacker issued 40 quintillion COVER tokens, but then destroyed most of the issued tokens, and also returned 4 350 ETH to the project.