Cover Protocol is a peer to peer coverage with fungible tokens. It lets the market set coverage prices as opposed to a bonding curve.
The process starts when market makers (MMs) deposit collateral to cover a product. MMs will receive two types of fungible cover tokens in exchange for their deposit. MMs can choose to sell the fungible token(s) to earn a premium, or provide liquidity in on order-book with the fungible token(s). Coverage seekers can then buy the coverage they need.
Cover Protocol allows DeFi users to be protected against smart contract risk. It stabilizes the turbulent DeFi space by instilling confidence and trust between protocols and their users. By bridging the gap between decentralized finance and traditional finance, Cover Protocol will open the doors of DeFi to all investors.