What is COVER Protocol?
COVER is the cross-chain utility token for Cover Protocol, a peer-to-peer decentralized finance (DeFi) insurance marketplace allowing users to purchase coverage against smart contract risks with policy prices determined by market value. Each Cover contract specifies the DeFi protocol to be covered, the preferred collateral, the required deposit amount, and the expiration date of policy. Users can stake collateral to mint CLAIM tokens (redeemable if an exploit occurs) or NOCLAIM tokens (redeemable if no exploit occurs) using a predictions market model to determine coverage premiums. In September 2021, it was announced that Cover Protocol would cease operations. COVER tokens were primarily used to vote in community-submitted proposals and to reward liquidity providers through the Shield Mining program.
