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Have you heard about Cove?
In view of the fact that the protocol did not have a test network, you may not have, or perhaps you have seen the $ 3 million pre-seed increase under the leadership of electric capital, with the participation of accomplice, Daedalus and Robot Ventures.
Cove is launching his mainnet today, the team told Blockworks exclusively. They also launch Coveusd, with which people can earn a yield on Ethereum.
But let’s make a backup: the Cove protocol is intended to deliver “risk-corrected yield” through composite Defi-Kluizen. It came about as a solution for Cove founder Sunil Srivatsa.
“I just spend a lot of time on an onchain, monitoring different returns and try to earn the most money. And I got sick of it, and I had something like:” There must be a better way to do this, “he said.” This is how I would give up farm if I were not lazy. “
So Srivatsa built the protocol and collaborated with Gauntlet so that the two can bring their strengths together.
‘[Gauntlet’s] Actually done a very extensive methodology that is a kind of substantiation of all the strategies we launch, where they do all the data and model, the data modeling, offline, off-chain, using their existing systems, “said Srivatsa. Cove has written” Python Silverback Bots that can actually take [the] Off-chain intelligence and use it to implement the protocol in the most optimized way. “
Cove is currently only on Ethereum, but Srivatsa teased that it was planning to expand later. However, the focus is on performing “safe and in a controlled manner”.
“We work very closely with Gauntlet to ensure that we optimize and follow everything while we roll this out,” he said. Cove was set to the balance once a day, which should take about 15 minutes. But if it has to try again, it can take up to 45 minutes.
Srivatsa designed Cove to not be custodial. In short, he wants to automate the functions for convenience of access. That also went in the thinking process behind the UX, he said.
To protect both users and the protocol, Cove has already undergone three audits with Zellic and Pashov Audit Group. Quantstamp and Trail of Bits are also auditors, according to the website.
You could probably have guessed this, but Cove will not be available in the US in the first instance. Srivatsa hopes one day with more regulatory clarity where they can remove the geoblock, especially because the team is located in the US, but we are not there yet.
It is clear that this is not the first Rodeo from Srivatsa. He was previously the CEO of Saddle Finance, which ended in 2023. He then founded Storm Labs, which raised the pre-seed round for Cove.
His experience in space has led him to realize that “Defi does not really need automated market use. It needs automated investing.”
This has been a concept in particular that is tried by other projects in the past, such as Sommelier.
I asked Srivatsa how he intends to expand the user base since the protocol goes directly to MAINNET. For him it is simple: make Defi as easy to use as running water. It is something that comes from his experiences from the past at Uber.