DeFi insurance provider Cover and Ruler shut down after dev team left – Yesterday, Decentralized finance (DeFi) insurance provider Cover, together with its smaller lending sibling Ruler, shut down after its development team abandoned their projects.
RULER and COVER, according to CoinMarketCap, both declined in price after the news. Consequently, RULER dropped from $10.68 to $1.11. Likewise, COVER dropped from $268 to $220.
According to its official statement, the decision to shut down was not easy. The stated,
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.
Furthermore, the announcement mentioned that after discussing with its remaining team, it made sense that the remaining treasury funds be evenly dispersed to token holders.
Although the announcement by DeFi Ted did not specify the reason for the development team’s departure, the protocols have been plagued with problems, particularly the much larger Cover. In December, the protocol was attacked as part of a so-called White Hat attack, and in March, Yearn Finance cancelled its merger plans with Cover.
In conclusion, DeFi Ted warned users to remove any funds stored in the protocols as soon as possible.