“Won’t Trust Them Again” Says Andre Cronje After Yearn Finance Sever Ties with Cover Protocol
The YFI creator deleted his tweet, saying, “It was an emotional response.” Yearn and Cover would no longer be working together, but insurance protection would be unaffected.
DeFi protocols Yearn Finance and Cover protocol are no longer working together. The aggregator announced Yearn Finance on Twitter,
“We have decided to end the previously announced merger process of Yearn and Cover. Both protocols will continue to operate independently. yVault depositors who have previously purchased Cover protection are unaffected by this.”
In November, Yearn Finance partnered with the peer-to-peer coverage market, and now, just over three months later, YFI creator Andre Cronje shared his displeasure on Twitter. Cronje in a now-deleted post on Friday, saying,
“Personally, this was very sad to see. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won't trust them again,”
“It was an emotional response. Twitter isn't the place for that. I often forget ethics and money don't mix.”
Cronje, along with FTX CEO Sam Bakman-Fried, was actually the advisor to Cover Protocol after the latter rebranded itself from SAFE protocol. The project has actually been facing setbacks right from the very start.
After its revival as Cover, it faced a backlash from the community for its tokenomics. At the time, Sam said, he has “no idea” what is happening with the project and that he is “not involved in any of the decision making.”
Late in December, the Cover protocol also suffered a hack in an infinite printing scheme resulting in the loss of $4 million that sent the COVER token prices crashing. Some of the funds were returned, and the team announced the launch of a new token.
COVER token’s price is down 32% in the past 24 hours at $628, while YFI is trading at $31,583.
The cover protocol also announced that it had parted ways with Yearn but shared no other explanation other than that one can still buy Yearn coverage on the platform.
“All Cover Products' roadmap and timeline are not affected,” it further stated.