COVER Protocol Launches New Token, Activates Compensation Plan DeFi Rate

COVER Protocol has launched a new version of the COVER token, which can now be claimed by those parties affected by the recent hack of the protocol.

New COVER Token Launch

— Cover Protocol (@CoverProtocol) January 5, 2021

A claims portal has been set up, which will distribute the new COVER tokens in accordance with the previously mentioned compensation plan blog post.

How does the claim process work?

Multiple claim options are available, depending on the circumstances of the user. COVER, YETI and YPIE holders, COVER-ETH liquidity providers and unmigrated SAFE and SAFE2 holders are all eligible to claim new COVER tokens.

Using the claims portal appears to be nice and straightforward; affected users will simply go to the portal, click the tab that matches their circumstances, and check their eligibility. Depending on which option tab they are eligible for, they will then click the “claim” or “migrate” button to redeem their new COVER tokens.

What led to the new COVER token and compensation plan?

On December 28th at approximately 8:08am UTC, an exploit was carried out which took advantage of a token-minting function in the COVER protocol. The bug resulted in the attacker – now revealed to be developers of a project called Grap.Finance – minting themselves 40 quadrillion of the original COVER tokens.

The attacker then dumped the minted tokens on the market via 1inch exchange for millions of dollars in proceeds, however later returned all funds to the protocol. Grap.Finance developers publicly took responsibility for the attack shortly after.

Despite funds being returned, the old COVER protocol has been replaced with a new and improved version, as well as a new COVER token which is now being distributed to those affected.

The post COVER Protocol Launches New Token, Activates Compensation Plan appeared first on DeFi Rate.

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