coveUSD
Cove’s flagship vault delivering institutional-grade USD yield
Overview
coveUSD is Cove’s flagship vault that delivers institutional-grade USD yield through automated capital allocation. By pairing off-chain intelligence with on-chain automation, coveUSD seeks to establish the benchmark rate for safe, blue-chip USD yield on Ethereum.
Key Features
Automated Optimization
Routes deposits through off-chain Silverback bots and Gauntlet’s institutional-grade risk models.
Dynamic Reallocation
Automatically reallocates capital across top-tier strategies to maximize risk-adjusted returns.
Proven Performance
Achieved net APYs up to 8.08% over the past three months.
Transparent Governance
Future active management secured behind a timelock for transparent governance.
How It Works
Strategy Selection
coveUSD dynamically allocates capital across a curated selection of blue-chip USD yield strategies:
Ethena sUSDe
Synthetic dollar protocol offering sustainable yield.
Frax sfrxUSD
Frax’s staked USD stablecoin.
Superform SuperUSDC
Multi-protocol yield optimization (Euler/Fluid).
Cove Boosties sUSDS
Maker/Spark yield vault.
Intelligent Rebalancing
The vault employs sophisticated off-chain intelligence to optimize allocations.
Risk Analysis
Gauntlet’s models continuously assess risk/reward profiles across strategies.
Opportunity Detection
Silverback bots monitor yield opportunities 24/7.
Efficient Execution
Rebalancing occurs through Programmatic Orders to minimize costs.
Deposits and Withdrawals
coveUSD offers flexible options for entering and exiting positions.
Deposits
Deposit USDC
You can deposit USDC into the protocol at any time.
Asynchronous Processing
Your deposit is processed during the next rebalancing cycle.
Claim coveUSD
Your coveUSD tokens become available to claim after the rebalancing event completes.
Automated Claiming: This step is handled automatically for you by our non-custodial off-chain bots. You can also claim your tokens manually if you prefer.
Withdrawals
You have two options for withdrawing your funds from the vault.
Redeem coveUSD
Redeem your coveUSD for a proportional share of the vault’s underlying assets. This option is available at any time, except during rebalancing windows.
Receive Asset Basket
You will instantly receive a basket of the vault’s current holdings (e.g., sUSDe, sfrxUSD, etc.).
Redeem coveUSD
Redeem your coveUSD for a proportional share of the vault’s underlying assets. This option is available at any time, except during rebalancing windows.
Receive Asset Basket
You will instantly receive a basket of the vault’s current holdings (e.g., sUSDe, sfrxUSD, etc.).
Request USDC Withdrawal
You can request to withdraw your entire position in USDC.
Asynchronous Processing
The request is processed during the subsequent rebalancing event, which typically occurs within 24 hours.
Claim USDC
Your USDC becomes claimable after the rebalancing is complete.
Automated Claiming: This step is handled automatically for you by our non-custodial off-chain bots. You can also claim your tokens manually if you prefer.
Performance
coveUSD has demonstrated strong risk-adjusted returns:
- Historical APY: Up to 8.08% net over the past three months
- Consistent Yield: Automated rebalancing captures opportunities across market conditions
- Cost Efficiency: CoW Swap integration minimize execution costs
Security
- Audited: Smart contracts audited by Trail of Bits, Pashov Audit Group, Zellic, Quantstamp, and yAudit
- Timelock: Active management changes subject to governance timelock
- Fully Collateralized: Always backed 1:1 by underlying assets
- Transparent: All allocations and rebalancing visible on-chain