Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger.
“We have decided to end the previously announced merger process of Yearn and Cover,” Yearn said on Twitter. “Both protocols will continue to operate independently. yVault depositors who have previously purchased Cover protection are unaffected by this.”
The process was initiated in November of last year amidst a half-dozen Yearn finance acquisitions, mergers, or collaborations. This split came as a surprise to many within the industry. Cover, a protocol that provides coverage or insurance for DeFi deposits, was a natural fit for yield vault provider Yearn.
Just earlier this month, Yearn finance announced that Cover Protocol coverage would become standard across all vaults. This came after a hack of Yearn’s DAI vault.
The two teams had also collaborated in crisis situations in the past. One such incident was when Cover Protocol experienced an “infinite mint” hack in late December of 2020.
Both teams confirmed that users can continue to purchase coverage for Yearn finance deposits. They also confirmed that current coverage will be unaffected.
Yearn Finance Founder Won’t Trust Them Again
Yearn finance founder Andre Cronje posted an emotional response to the news. “Personally, this was very sad to see. I had very high regard, trust, and faith in the Cover team. Lesson learned. Wont trust them again.”
Cronje deleted the tweet shortly after posting it and would instead put another in its place. “Deleted my previous tweet. It was an emotional response. Twitter isn’t the place for that. I often forget ethics and money don’t mix.”
On the other side, Cover Protocol has yet to provide any commentary on the split. Furthermore, the price was undoubtedly affected by the news.
Just two weeks ago, Cover Protocol had reached a new all-time high of around $1,700 after starting 2021 at $380. Cover’s price has gone down by 40% at the time of writing.