Crypto strategist and trader Josh Rager is putting the spotlight on a relatively unknown crypto asset that is quietly printing serious gains.
Rager says he believes that COVER Protocol (COVER) remains undervalued even after its ascent from a low of $207.31 on November 26th to an all-time high of $980.79 on December 6th, according to data from CoinMarketCap.
The move represents a surge of over 373% in less than two weeks.
When asked what he thinks is the fair value of COVER, Rager says he expects it to be priced between $2,000 to $3,000, which gives the crypto asset an upside potential of over 322% from its current price of $709.23.
COVER protocol is a peer-to-peer market coverage protocol that has three types of users, according to decentralized finance (DeFi) architect Andre Cronje.
First are the coverage seekers who purchase insurance for using a protocol such as yearn.finance. Next are prediction market users who earn fees by predicting whether a certain protocol will have a claimable incident or not. Meanwhile, liquidity providers can earn fees in various ways including providing a backstop to protocols. They can also generate income from coverage seekers and prediction market users through speculation and coverage fees.
On November 28th, Cronje announced the merger between DeFi yield aggregator yearn.finance (YFI) and COVER.
“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.”
Cornje highlights that the partnership will result in synergies that benefit both platforms.
“Cover provides a wider range of coverage and accepts more types of collateral. Cover products like perpetual coverage will get an expanded addressable market. Cover expands into a new cover money market, making the CLAIM token a collateral & borrowable asset.
Yearn gets coverage for vaults and can offer users a reduced risk product. Yearn can focus on vaults and lending, with yInsure (and yNFTs) being taken over by Armor. YFI cover writers earn increased fees from YFI coverage underwritten.”
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Featured Image: Shutterstock/AleksandrMorrisovich
