A developer under the pseudonym DeFi Ted announced the closure of the peer-to-peer insurance market Cover Protocol and the associated lending service Ruler.
The decision to do this was not easy and is final, adopted by the remaining team after reassessing the path forward in light of the sudden departure of key developers, he wrote.
The author of the statement advised users to move their assets as quickly as possible. Following the news of the shutdown, the COVER token fell 18% in 24 hours, while RULER dropped 94%.
“This is a payout to creditors. […] The founders, including me, will not participate in the distribution,” the developer wrote.
In November 2020, the DeFi project yEarn.Finance acquired Cover Protocol. According to Decrypt, the partnership ended in March 2021.
Back in December 2020, Cover Protocol was the victim of an attack. An unknown attacker exploited a vulnerability in the code and increased the issuance, after which the COVER token collapsed by 90%.
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