Introducing Cove, your DeFi portfolio simplifiedSponsored
The first automated ERC-4626 yield optimizer, built on Yearn V3 and optimized by Gauntlet
By: Cove •Sponsored
Feeling like you are constantly scouring CT for new yield sources or checking the latest on-chain rates? Or have you given up only to be earning 3.5% with stETH?
You’re not alone.
Introducing Cove, the automated yield optimizer that lets you effortlessly earn the best yields on-chain without the hassle of managing a portfolio. No more chasing yield or apeing into sketchy strategies. Cove is brought to you by DeFi veterans and advised by Joey Santoro, Founder of Fei Protocol & author of ERC-4626, the tokenized vault standard and Tarun Chitra, Founder & CEO of Gauntlet. The team has previously built protocols and now present the next innovation in DeFi utilizing the latest ERC-4626 standard for yield-bearing vaults.
The Dawn of a New Standard: ERC-4626
“ERC-4626 is to vaults what ERC-721 is to NFTs”
Previously in DeFi, interest bearing tokens (vaults) would have varying interfaces which each required a custom integration. This complexity made it very difficult for protocols to easily add support for many tokens. ERC-4626 fixed this by introducing a tokenized vault standard.
The standard is rapidly gaining adoption, with $1.68B in TVL and prominent protocols such as Maker and Frax recently adding support.
These vaults aim to bring clarity by unlocking untapped creativity among independent strategists and protocol devs. In the past, lending markets, aggregators, and intrinsically interest-bearing tokens have helped users find the best yield on their tokens by executing different strategies, but these strategies had slight variation from one protocol to another, which might be error-prone or waste development resources.
Vaults plan to reduce the integration effort and provide easy access to yield in various applications, requiring minimal specialized effort from developers. This paves the way for more consistent and robust implementation patterns, leading to more creative yield-bearing strategies. Cove plans to harness this creativity and offer investors a user-friendly platform to access these interest-bearing vaults and strategies to add to their portfolios.
As we look to the future, Cove is poised to become the hub for high-quality strategies in DeFi as more yield products are wrapped into vaults.
For reference, Yearn uses the following terminology from [YIP-75] Launch V3 for defining the relationship between vaults and strategies:
First Class Yield Optimization
Given the growing popularity of the tokenized vault standard and the imminent creation of permissionless strategies, we anticipate a surge in high-quality vaults. We want our users to choose from a curated list of strategies to add to their portfolio and let Cove handle the rest by managing their positions automatically. The protocol’s rebalancing strategy will be optimized by the world class team at Gauntlet, supercharging your DeFi portfolio. No more actively managing your positions every epoch or dealing with high gwei costs for staking/unstaking.
Trust Cove to secure that juicy yield for you!
Built on Battle-tested protocols
Cove stands on the strong foundation of blue-chip protocol Yearn. Built on the Yearn V3 and tailored with veYFI integration in mind, Cove serves as the liquidity layer to the new vault standard, making it easy to deposit USD stablecoins or ETH directly into an optimized, diverse selection of yield-bearing vaults. Cove takes this legacy further by integrating the newly released veYFI system to provide boosted yields for its users.
coveYFI coming Soon™
veYFI is a game-changer, allowing investors to unlock additional yield opportunities by holding and staking veYFI tokens and participating in Yearn’s gauge system. Cove plans to facilitate this integration, enabling users to reap the benefits of higher yields while participating in the broader Yearn and Cove ecosystems.
The Bright Future of Cove: Expanding Possibilities in DeFi
Cove represents a significant leap forward for DeFi and the broader crypto ecosystem, but it's only the beginning of the journey. Join our community and be among the first to experience the next innovation in the space. Cove's contributors and community are committed to leading the DeFi revolution, providing financial freedom for users worldwide, and making financial primitives accessible to everyone.
Join the Cove Revolution: Invest in Your Financial Freedom
In conclusion, Cove represents the future of DeFi, combining the new ERC-4626 vault standard with automated yield optimization, all built on Yearn V3 creating the next evolution of DeFi investing. Cove is poised to lead the way in providing a safer, more accessible DeFi experience.
Don't miss out on the opportunity to be a part of the Cove revolution. Join us on this exciting journey toward financial freedom, simplified investments, and the democratization of finance.
Join the Cove community today; we'd love to build this protocol with you and redefine the way the world approaches finance. Your financial freedom awaits.