Summary

Since the start of the development of Cover Protocol, we have incurred some operational costs.

Total outstanding debts to be repaid:

• 21k USDC on Auditing and Accounts setup
• 15 ETH on initial coverage/pool creation and deployments

We propose a few options regarding how to pay back the debts using treasury funds.

Proposal Details

At the announcement of the launch of Cover Protocol here, around 150 extra $COVER were minted to the treasury without affecting the scheduled total supply.

We propose to use this 150 extra $COVER to cover the debts.

Since the launch of the protocol, we have collected ~2,650 Dai from the redemption fees. We could use these collected fees first.

Please note: the payback of debts will be gradual in the next weeks to come. This may require the sale of $COVER from the treasury. However, we will talk to each lender whether they accept $COVER as payment.