Yesterday, Cover published an article on “Exchange old for new” on Medium, detailing the economic model and exchange method of the new Cover token. At this point, the majority of victims can finally recover their losses.
Everyone knows that on the evening of December 28, the DeFi insurance project Cover had two consecutive hacking incidents in one day. Because the number of tokens was changed to unlimited issuance, the price of the currency plummeted from about $800 to only 20. Around the dollar, almost zero.
But will the re-issuance of coins after 8 days really save the hearts of users? Let’s take a look at the conditions for receiving new tokens.
According to official information, users who can apply for SGD include:
1. The COVER/ETH pool liquidity provider on Uniswap;
2. Liquidity provider of COVER/ETH pool on SushiSwap;
3. Provide liquidity users for the COVER-ETH pool on Balancer
4. All holders of COVER tokens (including those held in wallets and CEX);
5. All users who hold YETI (Yearn Ecological Index Token) tokens;
6. All users who hold YPIE (PieDAO launch index token) token;
7. All SAFE2 and SAFE that have not been migrated;
This condition still seems very feasible, but there was a bug during this period, which caused most people to lose money after a sharp decline.
Because after the decline, three groups of people appeared. The situations they faced and the problems they encountered were divided into:
The person who sold all the coins in order to stop the loss after the currency price plummeted, causing them to sell at a price several times lower than the purchase price. Now they have no coins in their hands and cannot perform new currency replacement operations. The losses incurred during the period can only be caused by themselves bear;
Those who did not hesitate to spend high gas fees to buy coins at low prices must be stealing it now. They can use low-cost purchases to replace super-value new tokens, and they can also use the new tokens to re-mining to generate income. Pretty
At that time, I didn’t pay much attention to the collapse of the currency price, and I still held it for a long time as always. Congratulations on your escape, but this new token replacement operation still has to be executed, because the token replacement period in mining is only 90 days , Be careful to turn tokens into joy beans.
In Cover’s explanation, there are still two issues that are not mentioned: how much is the price of the issued currency and how to solve the large price difference with the old and new tokens. This is the issue that investors are most concerned about, but there is no relevant content in this area.
At the beginning of the start of the Cover Agreement, SAFE2 tokens were maintained until November 20, when the migration plan of SAFE2 tokens to COVER started. One SAFE2 was converted to 0.5 COVER, and the Token supply for the first year of COVER was 90,000. , 10,000 in the second year, and halved every year thereafter, with a total of up to 160,000 COVER tokens.
The current secondary conversion is just to do the previous thing again, but COVER is a governance token. After this additional issuance attack, the resolution of re-issuing a new token is still a direct decision by the project party, which can only show that COVER is The attributes of governance tokens need to be built slowly.
Although COVER made a quick remedy this time, it only took 8 days to launch a new solution, but can it really save users’ hearts? I don’t think so. The three major insurance projects, WNXM and COVER, have happened one after another. Only NSURE remains stable. In the future, more projects will be poured into this track to build a complete insurance ecosystem.
Insurance is a demand, but COVER’s move has brought security concerns to many users and the loss of value. We still need to wait and see, and investment needs to be cautious.
