Cover Protocol Token Dives After Yearn Breakup

Yearn Finance and Cover are splitting ways after announcing a merger back in November. The reasons behind the break-up haven’t been disclosed, but Yearn’s creator, Andre Cronje, has made one thing clear: it’s not amicable.

Lost Trust

Originally, Yearn—which specializes in lending aggregation, yield generation, and insurance—had partnered with peer-to-peer insurance lending protocol Cover with the intention that Cover would handle the insurance aspect so that Yearn could focus more on vaults and lending. 

But on Friday, Yearn announced on Twitter that it was ending its partnership with Cover. Shortly thereafter, Cronje tweeted (and since deleted), “I personally find it sad. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won’t trust them again.”

The Fallout

Yearn’s token price was largely unaffected, but COVER tanked immediately.

As shown in the following CoinGecko chart, after Yearn’s announcement followed by Cronje’s tweet roughly 20 minutes later, Cover dropped to $562 from $824—a 32% decrease within the course of a few hours.

Cover tweeted it has “parted ways with Yearn,” but that users can “still buy Yearn coverage on Cover protocol,” and that the project’s “products’ roadmap and timeline are not affected.”

Get smarter on DeFi and Web3

Get the 5-minute free newsletter keeping 60K+ crypto innovators in the loop.

No spam. Unsubscribe anytime.

Trending Now

CelsiusWithdrawalsPaused
Celsius Defies Fear of Implosion as Token Soars 218%
MarketsPump
Crypto Markets Sustain Rally After Monster Rate Hike
UniswapLPFeesPassETH
Uniswap Tops Ethereum in Terms of Daily Fees

Recent Jobs