Website

Cove Finance (COVE)

Last updated: Apr 16, 2024

Cove Finance is an automated ERC-4626 yield optimizer, leveraging Yearn V3 and enhanced by Gauntlet for optimization. Tailored with veYFI integration, Cove functions as a liquidity layer for the latest vault standard, enabling users to effortlessly deposit USD stablecoins or ETH directly into an optimized, diversified yield vault.

Pre-Seed: $3 Million

IMPORTANT: By investing in this business you agree to ourDisclaimer. All information including our rating, is provided merely for informational purposes. CryptoTotem does not provide investment advice.

Overview

Project industry	Finance Services & Banking
Product type	Platform
Whitepaper	Open

What is Cove Finance

Cove is the first onchain portfolio manager. Earn the best yields onchain without the hassle of managing a portfolio. Cove is built with the Yearn ecosystem in mind and is optimized by Gauntlet.

Cove acts as an intent aggregator for liquidity providers (LPs). Users can open a Cove position (basket) in three steps:

Select a base asset, either ETH or USD.
Choose an allocation strategy, which specifies how capital will deploy.

Planned options include maximum yield (powered by Gauntlet), market cap weighted (enabling custom indexes), or custom weights.

Determine which ERC-20/4626 tokens to include.

Potential tokens include stablecoins (sDAI, sFRAX, yDAI), liquid staking tokens (LSTs - stETH, sfrxETH, yETH), or liquid restaking tokens (LRTs).

The protocol aggregates and manages deposits according to user preferences and rebalances periodically. When rebalancing positions, baskets may have a coincidence of wants (CoW) like ring trades in CoW Swap’s batch auctions.

Details

Token supply: 1,000,000,000 COVE
Raised: 3,000,000 USD

Legal

Registration year: 2023

Token info

Ticker: COVE
Type: Utility-token
Token distribution:
0.5% - Community multisig signers
9.5% - Bazaar launchpad auction
8% - 1st year liquidity mining incentives
15% - Foundation
22% - Community treasury
45% - Current and future team, investors, and advisors

Cove Finance Roadmap

Phase 1 (now)

$COVE: a currently non-transferable governance token.
Bazaar Launchpad: an uncapped batch auction for $COVE to help bootstrap protocol owned liquidity.
Boosties: the dedicated liquid locker and staking platform for Yearn, built with Yearn V3.

Choose between automatically compounding or directly claiming dYFI rewards.
coveYFI: a liquid locker for YFI.
dYFI Redeemer: public good to automatically redeem dYFI for YFI without holding ETH.

Phase 2 (~Q3 2024)

Cove Protocol: the first onchain portfolio manager. Launching ~Q3 2024.

Eliminates loss-versus-rebalancing (LVR) which previously hurt liquidity providers.
Proprietary solver seamlessly matches individuals holding complementary liquidity positions, facilitating efficient trades without price impact, slippage, or MEV.

Phase 3 (~Q4 2024+)