Cover Pool

The Cover Pool is a high yield vault consists of multiple assets, the yield comes from protocol revenue. Anyone can deposit into the pool at any time; however, withdrawals are subject to a 14-day cooldown period.

Assets in the Cover Pool are not protected by USD8 and might be deployed to cover losses from protected Defi protocols.

Depositors should be aware of the risk associated before depositing.

Covered DeFi Protocols

USD8, together with our security partners, independently vets and selects DeFi protocols that demonstrate the strongest security practices. Coverage is offered on a per-LP-token basis, depending on our security assessment, and is limited to a percentage of potential losses, capped by the Cover Pool balance.

Once coverage is offered, the Cover Pool will accept the specified LP token for claims at any time, permissionlessly. Claimants receive a proportional mix of assets matching the Cover Pool’s composition.

Planned coverage (Eth mainnet)

Brand	Token Accepted	Address	Reimbursement(upto)
	Usd8	TBD	0.8 USDC
	Usd8 Protected Savings sUsd8	TBD	0.8 Usd8
	Aave Savings Gho sGHO	0x1a88Df1cFe15Af22B3c4c783D4e6F7F9e0C1885d impl 0x50f9d4e28309303f0cdcac8af0b569e8b75ab857	0.8 GHO
	Curve Savings scrvUSD	0x0655977feb2f289a4ab78af67bab0d17aab84367 impl 0xd8063123bba3b480569244ae66bfe72b6c84b00d	0.7 crvUSD
	Lido stETH	0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84 impl 0x17144556fd3424edc8fc8a4c940b2d04936d17eb	0.7 Eth
	Sky Savings sUSDS	0xa3931d71877c0e7a3148cb7eb4463524fec27fbd impl 0x4e7991e5c547ce825bdeb665ee14a3274f9f61e0	0.7 USDS
	Yieldnest ynETHx	0x657d9ABA1DBb59e53f9F3eCAA878447dCfC96dCb impl 0x9C1713BC42dCF621038F4016664fFAB096A05410	0.6 Eth
	Origin OETH	0x856c4efb76c1d1ae02e20ceb03a2a6a08b0b8dc3 impl 0xD86756dBb01e75A11AaDaCB75c8495759ED92033	0.6 Eth

Claiming

1. To start a claim, user transfers the protected LP token to the Cover Pool. Our front end will also calculate user's cover scores based on historical USD8 usage during this process and submit it on chain.
2. The claim enters a 10-day window where others can join. After 10 days, that LP token is removed from the covered list and no new claims are accepted.
3. Claimants can withdraw their reimbursement. The amount is calculated from total claims, each claimant’s cover score*, and the current Cover Pool balance. Payouts will match the Cover Pool’s asset mix.

After a claim, the protected LP tokens forfeited by claimers becomes the property of Usd8 protocol.

Cover Score

Cover Score is calculated based on your USD8 usage history — how much you’ve held and for how long. More USD8 held for longer increases the score, this includes USD8 LSTs like USD8 savings.

Cover Socre is computed off-chain with an open sourced algorithm, signed by the USD8's front end, and verified on-chain during a claim. Anyone can recalculate and validate every user's score.

Cover scores reset after a successful claim.

Passing the Walkaway Test

Computing Cover Scores is critical for Usd8. While relying on our front end works, that is not good enough, we are crypto natives, and we want to pass the Walkaway Test.

We are partnering with Brevis and using their ZK Coprocessor to independently compute Cover Scores. Users will be able to use Brevis's ProverNet to generate a cryptographic proof of their Cover Score based on their Usd8 history. This proof can then be submitted directly to the Usd8 payout contract onchain, which verifies it and processes the claim automatically.

Now, even if our team disappears, Usd8 payouts will still function independently and trustlessly.