Yearn & Cover merger

Yearn and Cover Protocol join forces. Providing cover has been a key initiative at Yearn since working with Nexus Mutual to launch yInsure. Yearn developers have been working with Cover Protocol devs since inception, so this collaboration comes natural for both. 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.

Synergies

• 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.

Cover v1.1

• New agnostic coverage: Cover v1.1 allows other protocols to create their own coverage. This enables other communities to stake and protect their own systems, allowing them to take cover in their own hands.
• Perpetual Cover: Cover is developing a model for perpetual coverage which allows coverage seekers to have continuous protection, without expiration. This is in stark contrast to current solutions which have fixed expiry and require more active management.
• Yearn Vault integration: Yearn LPs will be covered by default through Cover’s perpetual products.
• Open for all projects: Cover will be used as a provider for other DeFi protocols, allowing communities to create their own coverage ecosystems with no additional overhead.
• COVER token: The existing COVER tokenomics will remain as is.

Discuss

• Yearn forum post: https://gov.yearn.finance/t/yearn-cover-collaboration/8370