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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.

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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.

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How It Works

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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.

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Intelligent Rebalancing

The vault employs sophisticated off-chain intelligence to optimize allocations.
1

Risk Analysis

Gauntlet’s models continuously assess risk/reward profiles across strategies.
2

Opportunity Detection

Silverback bots monitor yield opportunities 24/7.
3

Efficient Execution

Rebalancing occurs through Programmatic Orders to minimize costs.

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Deposits and Withdrawals

coveUSD offers flexible options for entering and exiting positions.

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Deposits

1

Deposit USDC

You can deposit USDC into the protocol at any time.
2

Asynchronous Processing

Your deposit is processed during the next rebalancing cycle.
3

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.

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Withdrawals

You have two options for withdrawing your funds from the vault.
1

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.
2

Receive Asset Basket

You will instantly receive a basket of the vault’s current holdings (e.g., sUSDe, sfrxUSD, etc.).

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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

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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