COVER will be a game changing product that inspires you to protect yourself from risks associated with smart contracts, DeFi, and encryption as a whole. Cover was upgraded from $SAFE2 ($SAFE2 was upgraded from $SAFE). The goal is to protect current SAFE token holders from further expansion due to current farming profits.COVER Protocol is a decentralized risk protection market for Ethereum smart contracts, which aims to allow point-to-point risk protection between users, and its cost is completely priced by the market.Cover is the ERC-20 native governance token of the Cover Protocol, with the following use cases:Governance: COVER token holders can vote on proposals submitted by the community, which will determine the future development of the agreement;Risk protection mining: Users can earn COVER tokens by providing liquidity for the COVER Protocol;Claim Management: Token holders can use COVER tokens in the claim management process to validate or invalidate claims.When the liquidity provider deposits collateral into the Cover smart contract, a universal risk protection token will be generated. Each Cover smart contract specifies its protected protocol, preferred collateral, deposit amount, and validity period.These universal risk protection tokens are 1:1 linked to their collateral. The liquidity provider will receive two types of tokens for each unit of collateral deposited (such as 1DAI): CLAIM and NOCLAIM. Liquidity providers can choose to sell these two types of tokens to providers and demanders of risk protection services. The CLAIM token represents the right to withdraw corresponding collateral when security risks included in the risk protection contract occur during the warranty period. The NOCLAIM token represents the right to withdraw corresponding collateral when there are no security risks included in the risk protection contract that occur during the warranty period.Users within the COVER Protocol can be divided into three categories:Liquidity providers hold CLAIM and NOCLAIM tokens and provide their liquidity.Risk protection service demanders hold CLAIM tokens to cover the security risks of protected products.Risk protection service providers hold NOCLAIM tokens and receive rewards in the event of a risk-free event.
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