DeFi Projects Cover, Ruler Are Shutting Down After Development Team Exits

The price of both protocols’ tokens plunged on the news.

By Kevin Reynolds

Sep 5, 2021 at 4:29 p.m. UTC

Updated Sep 7, 2021 at 1:20 p.m. UTC

Kevin Reynolds

Kevin Reynolds is Editor in Chief at CoinDesk. He owns bitcoin, ether, polygon and solana.

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Decentralized finance (DeFi) insurance provider Cover, together with its smaller lending sibling Ruler, are shutting down after the development team that serviced them both abandoned the projects.

The price of both protocols’ tokens dove on the news, with COVER falling from $268 to $228 while RULER crashed from $10.68 to $1.37, according to CoinMarketCap.

Though the announcement by the community manager known as DeFi Ted didn’t say why the development team had left, the protocols have been plagued with issues, particularly the much larger Cover. Last December, the protocol was a victim of a so-called White Hat attack and then, in March, Yearn Finance ended its plans to merge with Cover.

DeFi Ted warned users to withdraw any funds from the protocols as soon as possible.

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