{"id":117755,"date":"2020-11-22T22:29:24","date_gmt":"2020-11-22T19:29:24","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/decentralized-insurance-protocol-cover-holds-vote-to-cover-pickle-hack\/"},"modified":"2020-11-22T22:29:24","modified_gmt":"2020-11-22T19:29:24","slug":"decentralized-insurance-protocol-cover-holds-vote-to-cover-pickle-hack","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/decentralized-insurance-protocol-cover-holds-vote-to-cover-pickle-hack\/","title":{"rendered":"# Decentralized insurance protocol Cover holds vote to cover Pickle hack"},"content":{"rendered":"<p>&#8220;<strong># Decentralized insurance protocol Cover holds vote to cover Pickle hack <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTEvNzQ4NjBmNzQtNzllZC00YjU2LWI3YjctN2Y3NzNjMjNiNDkzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>In what might be an important step towards the maturation of the decentralized insurance space, a claim was filed yesterday with DeFi insurance protocol Cover following the $19 million Dai hack of Pickle Finance \u2014 and so far, the majority of users want to see a payout h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en.<\/p>\n<p>According to the claim on Cover\u2019s website filed Nov. 21, there have been 99 votes at the time of publication <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/snapshot.page\/#\/cover\/proposal\/QmPSkV68ihhP8EAZbNoQVsTpUh82wiX18ckyEwiUbChRjQ\">throwing<\/a>\u00a0roughly 9,800 COVER tokens \u2014 more than 99% of respondent tokens \u2014 behind a &#8220;yes&#8221; vote to pay out affected coverage holders. Ivan Martinez, a technical advisor for Cover, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/0xKiwi_\/status\/1330246939762446337\">said<\/a> on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> that should the vote pass, the claim will move to its Claim Validity Committee \u201cto decide if it\u2019s valid for a payout or not.\u201d <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24COVER&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$COVER<\/a> Protocol needs <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24COVER&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$COVER<\/a> holders to head to the snapshot page to vote for the claim on <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24PICKLE&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$PICKLE<\/a> finance. <\/p>\n<p>So far it seems a resounding yes to be paid out. <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/P8nl5NgpiW\">https:\/\/t.co\/P8nl5NgpiW<\/a> <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/VTnIi3HZ2O\">https:\/\/t.co\/VTnIi3HZ2O<\/a><\/p>\n<p>\u2014 DeFi Ted (Bakes) (@DeFi_Ted) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/DeFi_Ted\/status\/1330287323498635269?ref_src=twsrc%5Etfw\">November 21, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Although the hacker absconded with roughly $19 million in Pickle user funds, Cover <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CoverProtocol\/status\/1330416740476592128\">clarified<\/a> that any payout was not going to cover the entirety of the loss. In an interview with Cointelegraph, semi-anonymous and core Cover developer Alan said that after CVC approval, &#8220;all PICKLE CLAIM token holders will be able to redeem 1 CLAIM token for 1 DAI,&#8221; assuming the Claim Validity Committee, or CVC, approves a 100% payout to holders, as Alan expects.<\/p>\n<p>There are currently over 340,000 Pickle CLAIM tokens outstanding, where they trade on secondary markets for $0.90. Alan pointed out that this could lead to some &#8220;arbitrage opportunities&#8221; for traders who expect the proposal to pass.\u00a0<\/p>\n<p>Pickle\u2019s claim is one of the first test cases for a decentralized insurance protocol using a blockchain snapshot to vote on coverage. As many in the crypto space have been affected by hackers taking advantage of exploits since the DeFi boom began, the response on social media has been supportive of a payout, but also skeptical.<\/p>\n<p>Many are concerned about what Cover will decide because yesterday\u2019s attack on Pickle did not use a flash loan attack \u2014 a common tactic for hackers targeting DeFi protocols \u2014 but rather a maligned tool which some claim <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/Simp2win\/status\/1330240701129515014\">resembles<\/a> more of an exit scam. The hackers were able to swap funds between a malicious copycat contract and Pickle\u2019s yield-bearing vault \u2014 called the cDAI jar \u2014 leading to users noticing the jar had been emptied. <\/p>\n<p>Under Cover\u2019s guidelines, the project <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.coverprotocol.com\/Cover%20Protocol%20Claims%20Guide.pdf\">states<\/a> it will pay out claims from exploits or certain attacks on smart contracts \u2014 specifically referencing flash loan attacks \u2014 resulting in \u201ca material loss of funds from the smart contract, or smart contract system with funds either moved to another address which the original owner or owners do not control or the funds are made permanently irrecoverable.\u201d <\/p>\n<p>No matter what conclusion Cover ultimately reaches, its decision will have ramifications for the DeFi community. In addition to Pickle Finance, hackers have targeted several DeFi protocols this year resulting in the loss of millions in funds, from Harvest Finance, Value, Akropolis, Cheese Bank, and Origin, to name a few. A robust selection of insurance protocols such as Cover may help mitigate the fallout from such attacks.\u00a0<\/p>\n<p>Said Cover&#8217;s Alan:<\/p>\n<blockquote><p>&#8220;I think DeFi coverage is essential for mass adoption of these protocols. Some of these protocols that people are creating will change the financial industry for good, but since we are especially early, there are many attack vectors present, and many more unknown. Our job is to allow users to experiment with <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changing protocols while also remaining hedged against exploit risk.&#8221;<\/p><\/blockquote>\n<p>Voting on Pickle\u2019s claim will end on Nov. 23 at 11:59 AM EST.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/decentralized-insurance-protocol-cover-holds-vote-to-cover-pickle-hack\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Decentralized insurance protocol Cover holds vote to cover Pickle hack &#8221; In what might be an important step towards the maturation of the decentralized insurance space, a claim was filed yesterday with DeFi insurance protocol Cover following the $19 million Dai hack of Pickle Finance \u2014 and so far, the majority of users want&#8230;<\/p>\n","protected":false},"author":1,"featured_media":117756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/74860f74-79ed-4b56-b7b7-7f773c23b493.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,74882,117,70944,70299],"class_list":["post-117755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-hacks","tag-business","tag-hackers","tag-insurance"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/117755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=117755"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/117755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/117756"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=117755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=117755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=117755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}