Yesterday, 21st of November, a user filed a claim with Cover, a DeFi insurance protocol, after the hack of $19 million from Pickle Finance. This claim’s uniqueness is that the outcome will either boost trust in DIP or have an opposite effect.
Many users are eagerly awaiting the result to know their stands with the DeFi insurance protocol’s whole idea. They want the payout to happen, leading to a worldwide adoption and reliance on insurance products.
The claim was filed on the 21st of November, and already, it has garnered 99 votes that support the idea of paying the coverage holders who lost their funds in the hack. According to Cover’s technical advisor, Ivan Martinez, if the vote passes, the next stage will be the Claim Validity Committee who’ll decide whether the payout will happen or not.
The Pickel hack led to a loss of $19 million of the user’s fund on the protocol. But it seems that Cover is not going to pay the total amount. The insurance protocol’s developer Alan insinuated that after the committee approves the payout, they’ll know the payout’s extent. If the committee agrees to cover the entire loss, every PICKLE CLAIM holder can redeem a Claim token for 1 DAI.
Cover protocol and Pickle Finance
According to reports, more than 340,000 Pickle CLAIM tokens are currently trading for $0.90 on the secondary. Alan believes that arbitrage opportunities may arise for some traders who want the committee to approve the 100% payout.
Pickle Claim is amongst the DeFi insurance protocol that uses snapshot for coverage voting. Due to the continued hacker attacks, many people have lost hugely in the community. So, many people have taken to social media to express their support for a payout. However, some of the response is not too positive.
Many people are worried because of the nature of the attack that happened to Pickle. Usually, hackers use flash loans to manipulate DeFi projects to act as they want and steal users’ funds. But in the case of Pickle, the hackers used a different approach to commit the crime.
Many people are skeptical that such a claim will be paid because Cover already stated the types of attacks it will produce. According to their guidelines, the company will pay claims for exploits or smart contract attacks. So the community is waiting for the result of the final decision.