The immensely successful Yearn.finance (YFI) is partnering with the crypto newcomer Cover Protocol (COVER).
According to Yearn.finance creator Andre Cronje, YFI developers have been working with the Cover Protocol team since its inception and will now officially merge.
“The two teams working together as one will help optimize, enhance, and amplify the work that is already underway. Yearn can focus on its best-in-class vaults, while Cover becomes the backstop coverage provider for the Yearn product suite, as well as for DeFi as a whole.”
Cover Protocol can be used by coverage seekers – liquidity providers who want to earn fees for providing capital – and prediction market users who want to earn profits on the perceived risk on a given protocol, according to Cronje.
The Yearn creator notes Cover is developing a model for perpetual coverage which will grant continuous protection without expiration.
The insurance protocol’s governance token, COVER, is trading at $522.27 at time of writing and is up about 120% in the past seven days, according to CoinGecko.
Cronje gained fame in crypto circles after yearn.finance’s governance token, YFI, surged in value since rolling out in mid-July. The token exploded from a low of $31.65 to $28,890 at time of writing, an increase of about 91,000%, according to CoinGecko.
The maximum supply of COVER is 90,000, compared to 30,000 for YFI.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Art Furnace
