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Recently, the Ruler and Cover protocols announced the shutting down of the project because their core members left the projects suddenly. Also, the remaining treasury funds will be evenly dispersed among the token holders. Having said that, the team requested to withdraw the funds from both protocols as soon as possible because the maintenance of UI is now complex for them.
The news was disclosed by the DeFi Ted, lead writer of Ruler and Cover protocol, in an open letter.
Ruler protocol was a market-driven lending platform providing fungible and non-liquidable loans, and the Cover was an insurance protocol launched a year ago. The cover had created a decentralized market for the investors in the DeFi protocols. We cannot say that the news was entirely sudden; instead, there were already many hints about shutting down the platform.
On August 31st, the Cover protocol announced the departure of CryptoPumpkin Alan and KryptoCucumber, the technical team members. In a tweet on September 1st, Alan himself announced his indefinite leave from DeFi.
Although the post claimed that the other team members were committed to the projects, but both the projects announced a seven-day shutdown of their UI. Within five days, all other members changed course and decided to shut down the UI permanently.
The team has decided to evenly disperse the treasury funds to the token holders. It further said that block number 13162680 would be used as the snapshot for distributing the funds to the token holders. However, the detailed mechanics of returning the assets are still not precise.
The cover protocol also faced a minting hack in December 2020. Although the platform redistributed the funds returned by the hackers among its customers, but the value of the token fell drastically.
The price of the RULER token has fallen considerably since two days, while there is not much effect on the COVER token yet. The price of RULER has decreased by more than 50% after the news of the shutdown came across and has reached $0.5887.
Similarly, the price of the COVER token is also continuously decreasing for 24 hours and has reached $209.96 after the news of shutting down of the platform.
The decision of shutting down the Cover and Ruler protocol might seem shocking to many, but the decision is definitely not a sudden one. Hence, It is advisable to withdraw your funds from both protocols as soon as possible. As an alternative to the insurance protocol Cover, you may consider Nexus Mutual, which gets you covered against the exchange hacks and the smart contract failures. It aims to replace insurance by building an alternative risk-sharing platform.