DeFi Divorce: Yearn Cancels Tie-Up With Cover Protocol

DeFi Divorce: Yearn Cancels Tie-Up With Cover Protocol

Decentralized finance (DeFi) portal Yearn Finance announced via Twitter that it is ending its previously announced merger with DeFi market coverage provider Cover Protocol.

  • Yearn tweeted Friday that it has decided to end its merger process with Cover Protocol, a peer-to-peer, decentralized insurance marketplace and that both protocols will continue to operate independently. No reason was given for the breakup.
  • Andre Cronje of Yearn subsequently expressed his disappointment in a now-deleted tweet, saying: "I personally find it sad. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won't trust them again."
  • Yearn added that yVault depositors who have purchased Cover protection will be unaffected.
  • Plans for the merger were announced in November, with the aim of Cover becoming Yearn's backstop coverage provider for its vaults and offering users a reduced risk product.
  • Yearn suffered an exploit in one of its DAI lending pools on Feb. 5, draining $11 million.
  • Cover also suffered an exploit in December, when a "white hat" hacker tricked the protocol into minting 40 quintillion of its native tokens, which the hacker cashed out before subsequently returning them.
  • Source