Sushi

Summary

With an increase in security breaches in smart contracts and the crypto space as a whole, it is indeed a scary time for us all.

This proposal has two parts that will help build a synergistic relationship between SushiSwap and Cover Protocol:

An incentivized COVER-ETH SushiSwap pool.

SushiSwap uses an allocation of its treasury to help provide exploit protection to its community. Coverage would be provided in the event of a hack, bug, exploit or economic manipulation attack.

We believe SushiSwap’s vision aligns very well with Cover Protocol’s vision; both are innovative, growth-minded and community driven projects that put security first.

Who Are We?

Cover Protocol is a protocol that is focused on protecting and covering the DeFi community in the unfortunate event of a hack, bug, exploit and or economic manipulation attack. We provide coverage on smart contracts for anyone that needs it. Our coverage does not require KYC, is fungible, infinitely scalable and the price of coverage is determined by the market.

Proposal Details :

Create a COVER-ETH pool on SushiSwap which will be incentivized by Sushi Token at a 0.1x

Cover Protocol will create its own farm where users can deposit COVER-ETH sushi farm tokens to earn COVER token as well.

A 3 month pool may be a good place to start.

This will help drive more liquidity towards SushiSwap along with trading fees by making SushiSwap the defacto place to trade COVER token… It will also allow the SushiSwap Community to earn Cover Tokens.

Allow for the treasury to allocate a portion of its funds towards being a market maker and/or coverage provider by minting CLAIM and NOCLAIM tokens and providing liquidity with those tokens. In order to make the price of coverage on SushiSwap as affordable as possible, we recommend that SushiSwap become a coverage provider or market maker. This has the additional benefit that the treasury will gain financially as long as there is no exploitation on SushiSwap. We leave it up to the community to determine how much liquidity to provide. Benefits of coverage provider :

Show confidence in your project’s security. Earn premium(s) by selling CLAIM tokens. Cheap coverage opportunities for your community to stay protected. Earn $COVER for staking NOCLAIM LP BPT tokens. Earn balancer fees by providing liquidity in the pool(s). Redeem collateral back as long as there is no claim. The $COVER token is accumulated by those providing liquidity, providing coverage and participating in $COVER shield mining. This means the protocol and its users can have a say in Cover Protocol’s governance and the future of coverage in DeFi. Incentivize your own token as well! Benefits of market maker :

Cheap and low slippage coverage for your community to stay protected. Earn $COVER for staking CLAIM and NOCLAIM LP BPT tokens. Earn balancer fees by providing liquidity in the pool(s). Redeem collateral back as long as there is no claim. The $COVER token is farmed by those providing liquidity, providing coverage and participating in $COVER shield mining. This means the protocol and its users can have a say in Cover Protocol’s governance and the future of coverage in DeFi. Incentivize your own token as well! Additional Information:

App: https://app.coverprotocol.com/ 22 Product Paper : https://coverprotocol.com/Cover Product Paper.pdf 6 User Guide : https://coverprotocol.com/Cover Protocol User Guide.pdf 5 *Claims Guide : https://coverprotocol.com/Cover Protocol Claims Guide.pdf 1

Sushiswap forum link : https://forum.sushiswapclassic.org/t/cover-protocol-sushiswap-coverage-collaboration/1402

Maki thoughts :

Cover Protocol paid out their first exploit (Pickle finance) and listed first on Sushiswap I think it is worth rewarding and making sure that our next products under the Sushi umbrella are covered.

Starting with a 0.1x alloc for 3 months with a following vote to keep or end the rewards would be a good start.

A range of coverage will be proposed with this vote.

Based on our treasury I think :

• 350 000 DAI
• 250 000 DAI
• 100 000 DAI Nothing

Would be fair.

Keep in mind we will need to sell SUSHI to pass this proposal.

A second proposal vote will decide how to get the DAI.