01 / THE IDEA
AI pricing for the risk around an Aave position.
Aave depositors see yield, but the reserve, liquidity, oracle, and integration risks around that yield are not given a live cover price. xCover makes cover part of opening the position: the pricing agent reads live protocol state and cited evidence, then returns an attributable signed price or refusal.
01ReadLive Aave reserve and pool evidence
02PriceTwo assessments, deterministic premium
03EnforceVault, policy, pool, and resolver contracts
02 / TWO PARTICIPANTS
Depositors buy cover. Underwriters back it.
DepositorsRequest an AI price, open a covered USDT position through xCover, receive linked vault shares and an XCOVER policy NFT, and can later claim valid USDT payouts or exit the Aave-backed position.
UnderwritersDeposit USDT into CoverPool, receive pool shares, earn premiums from covered positions, and provide the capital reserved behind valid claims.
Separate capitalBuyer USDT is supplied to Aave. Underwriter USDT stays in CoverPool and is never supplied into the reserve it covers.
Current economicsPremiums increase pool capital and provider-share value. Valid claims can reduce underwriter capital. The current release charges no separate xCover protocol fee.
03 / THE POLICY NFT
An on-chain policy certificate, not a payout coupon.
Each successful covered deposit immediately mints a non-transferable ERC-721 named xCover Policy, symbol XCOVER. Its policy record fixes the owner, reserve, amount, term, premium, quote hash, terms hash, and lifecycle. Its metadata and SVG artwork are generated entirely on-chain.
ImportantThe NFT is never sold, transferred, burned, or exchanged for USDT. A successful claim changes it to Paid and pays USDT to its owner. The buyer exits the Aave position separately to redeem remaining assets.
04 / WHEN COVER PAYS
Waiting is not a claim.
Mainnet waits 86,400 blocks—approximately 24 hours—to reduce adverse selection. After activation, anyone can publish observations: contract-read snapshots of Aave’s deficit, oracle price, redeemable liquidity, and supplied assets. The current terms require at least 30 samples across an approximately 30-minute window.
No triggerIf Aave remains healthy, evaluation returns no covered trigger and no payout is created.
Covered triggerA sustained material reserve deficit, inability to redeem, or oracle/depeg failure is proven by the required samples.
SettlementThe dashboard lets the user check eligibility, evaluate a proven trigger, and claim USDT. The existing NFT remains in the owner’s wallet.