Decentralized finance (DeFi) insurance provider ‘Cover’, together with its smaller lending sibling ‘Ruler’ are both shutting down their operations after the development team that oversaw the 2 platforms allegedly abandoned the projects.
According to a publication by DeFi Ted, who is the community manager, “It is with conflicted emotions that I announce the end of RULER & COVER Protocol. The decision to do this did not come easy and is a final decision the remaining team made after reviewing the path forward, after the core developers suddenly left the projects.”
The post from the community manager also mentions that as compensation, the team will evenly distribute the treasury funds of the tokens to token holders as a form of creditor payout. It stated, “After discussing with the remaining team and finalizing plans moving forward it made sense that the remaining treasury funds be evenly dispersed to token holders. This is effectively a creditor payout, we will not be continuing with the RULER & COVER token or contracts and the UI will remain shutdown.”
DeFi Ted also expressed his disappointment that the development team suddenly left the project stating, “I want to personally say that I was extremely disappointed to learn that the development team was leaving so suddenly, especially given the time we had spent together building out the protocols and following the vision they had. This being said, we want to wish the development team all the best in their endeavours outside the crypto space and to the community we want to say that while this is all we can do from a treasury standpoint with what is available, we won’t forget you either.”
The protocols have been plagued with issues, particularly the much larger Cover. Last December, the protocol was a victim of a White Hat attack and then in March, Yearn Finance ended its plans to merge with Cover.
At the end of the post, the community manager warned users to withdraw any funds from the protocols as soon as possible stating “Please withdraw any funds from both protocols asap, as we can no longer maintain the UI and redemption via etherscan is complicated.”
The price of both protocols’ tokens plunged on the news, with COVER falling from $268 to $221.67 while RULER crashed from $10.68 to $1.12, as of the time of this writing.