Protect your capital through Smart Contract Coverage

CORE decided to collaborate with COVER Protocol and bring smart contract coverage to our ecosystem.

In order to give our users the best experience, this article will explain the main points on how COVER works and how the CORE community can benefit from this collaboration.

COVER is a peer to peer smart contract coverage protocol. You can participate in this protocol either as a Coverage Seeker or Market Maker (Liquidity Provider).

Coverage Seeker: 🔮

A Coverage Seeker aims to secure their capital by purchasing smart contract coverage. This is done by purchasing CLAIM tokens, 1 CLAIM will cover 1 DAI worth of tokens for a specific time frame.

Smart Contract Coverage for CORE can be purchased in the Marketplace.
Go to app.coverprotocol.com and connect your wallet.

The Marketplace for CORE displays useful information regarding the expiration date of the coverage, the current price of CLAIM tokens and a “Buy” button to purchase your coverage.

Do not purchase NOCLAIM tokens, if you want to receive coverage for your capital you need to buy CLAIM.

The Expiration Date shows how long your coverage is valid. Our first CORE Coverage is valid until 28th February 2021.

Each CLAIM token covers 1 DAI worth of CORE. Currently, 1 CLAIM is 0.05 DAI. If you want to purchase coverage for $10,000 worth of CORE, you would need to purchase 10,000 CLAIM tokens which, cost 500 DAI.
To do so, select the “Buy” button on the right side, you will be redirected to our CLAIM Balancer Pool.

Once you have purchased your CLAIM tokens with DAI. You are immediately covered.

How to file a Claim:

In case of an incident, you will have to navigate to the Claims Section and submit a claim by pressing the “+ FILE CLAIM” button in the top right corner. If your claim is approved, you will be able to redeem your CLAIM tokens for
1 DAI each.

Market Makers provide liquidity for our coverage on COVER Protocol. They are essential for our smart contract coverage to work. Therefore, we decided to incentivize these Liquidity Providers by offering Shield Mining Rewards. By providing liquidity, Market Makers are rewarded with CORE staking rewards and Balancer Pool fees.

Market Makers: (Liquidity Providers) ✔️

A Liquidity Provider enables CORE users to purchase coverage (CLAIM tokens). In return they receive trading fees on balancer, CORE Shield Mining rewards and if Cover governance votes accordingly, COVER will also be distributed to our pool.

The Collateral used for CORE’s coverage pool is DAI.
Make sure to have your DAI ready in your wallet.

Navigate to app.coverprotocol.com, connect your wallet, then navigate to “Mint” and select CORE from the list of Protocols.

Select the available Expiration Date from the drop down menu. Afterwards select the amount of DAI which you want to contribute as a Liquidity Provider.

Select “Approve” and then press “Mint”.

After Minting your CLAIM & NOCLAIM tokens, you will be able to find them under “Dashboard”.

In the next step you will have to add your CLAIM and NOCLAIM tokens to the Balancer pool. Head over to “Dashboard” and then click on “BPool” to open the Balancer Pool.

CORE CLAIM Balancer Pool: https://pools.balancer.exchange/#/pool/0xa9d06f185f300c57fa54dc71678b225e4ce89407/

CORE NOCLAIM Balancer Pool:
https://pools.balancer.exchange/#/pool/0xf677ed557d321a225aed0f17e295146bb73a3c5b/

Click “Add Liquidity”

1. Click on Multi Asset
2. Add your COVER_CORE_CLAIM Token (press MAX). This will automatically add the appropriate amount of DAI to it.
3. Click the red square
4. Add Liquidity

Repeat this process with your NOCLAIM tokens as well.

The next step is to stake your BPT and earn shield mining rewards.

1 CLAIM + 1 NOCLAIM always equals 1 DAI.

In case of an incident CLAIM tokens will be worth 1 DAI and NOCLAIM 0 DAI.

If the coverage expires without an incident, CLAIM will be worth 0 DAI and NOCLAIM will be worth 1 DAI.

This means that regardless of the outcome, you as a liquidity provider are guaranteed to receive your initial contribution back + pool fees and shield mining rewards (if BPT are staked).

Shield Mining CORE 🛡️

If you want to be rewarded CORE staking rewards from shield mining, you will have to navigate to the “Shield Mining” page.

You will find two pools for CORE:

• CORE — CLAIM
• CORE — NOCLAIM

Make sure to stake both your CLAIM & NOCLAIM Balancer Pool Tokens (BPT).

Open the CORE — CLAIM tab from the menu, select the amount of BPT you want to deposit (or click MAX) and click “Confirm Deposit”.

You are now earning CORE staking rewards, you will see your Shield Mining rewards on the right side of the table (My Rewards). To claim your rewards click “Claim All Rewards”.

All done, you are successfully providing Liquidity and earning, Balancer Pool rewards and CORE Shield Mining rewards.