xCOVER

With this passed proposal by the community, COVER holders can now stake their COVER to receive xCOVER.

There are no fees charged for xCOVER except the gas you pay.

What is the benefit?

With xCOVER, you will be able to

  • vote on Cover Protocol proposals on snapshot. With the xcover strategy merged, you will be able to vote on Cover Snapshot Space proposals with xCOVER.

  • share platform revenue. Currently 30% of the platform fees are used to buy back COVER and distribute those COVER to xCOVER holders.

  • borrow against xCOVER on various lending platforms including Ruler Protocol soon.

When does the buy back happen?

There is no set schedule in terms of when does the buy back happen. However, the team will execute the buy back as least once a week unless newly generated fees is less than $1000 during the week. More buy backs will be executed as necessary (like around coverage expiry) if significant more fees are generated.

How to stake/unstake COVER for xCOVER?

  1. Stake or unstake as many COVER as you preferred.

  2. Staking COVER, you receive a portion of the platform fees via buybacks of COVER

  3. Un-staking will withdraw your initial COVER staked + any rewards/fees back to your wallet