COVER will be a game-changing product that incentivizes you to protect yourself from the risks associated with smart contracts, DeFi, and crypto in general. COVER is an upgrade from $SAFE2 ($SAFE2 is an upgrade from $SAFE). Its goal is to protect current SAFE token holders from further inflation due to current farming earnings.

COVER Protocol is a decentralized risk protection market for Ethereum smart contracts, designed to allow peer-to-peer risk protection between users, and its cost is completely priced by the market.
COVER is the ERC-20 native governance token of COVER Protocol, and has the following use cases:
Governance: COVER token holders can vote on proposals submitted by the community, which will determine the future development of the protocol;
Risk protection mining: Users can earn COVER tokens by providing liquidity for COVER Protocol;
Claims management: Token holders can use COVER tokens to verify claims or use Claim invalid.

Universal risk protection tokens are generated when liquidity providers deposit collateral into the Cover smart contract. Each Cover smart contract specifies the protocol it secures, preferred collateral, deposit amount, and expiry date.
These universal risk protection tokens are pegged 1:1 to their collateral. Liquidity providers will receive two tokens for every unit of collateral deposited (eg 1DAI): CLAIM and NOCLAIM. Liquidity providers can choose to sell these two tokens to providers and demanders of risk protection services. CLAIM tokens represent the right to withdraw the corresponding collateral when the security risks included in the risk protection contract occur within the insurance period. The NOCLAIM token represents the right to withdraw the corresponding collateral when the safety hazard included in the risk-free guarantee contract occurs within the guarantee period.

Users in COVER Protocol can be divided into three categories:
Liquidity providers hold CLAIM and NOCLAIM tokens and provide their liquidity.
Risk protection service demanders hold CLAIM tokens to cover the security risks of protected products.
Risk protection service providers hold NOCLAIM tokens and receive rewards when risk-free events occur.