DeFi Divorce: Yearn Cancels Tie-Up With Cover Protocol
5 Mar, 2021•DeFi
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.