🛡️Alpha May 2026: Covered Vaults
April was the worst month for DeFi exploits ever. 28 incidents in 30 days. $635M lost.
Covered Vaults recap:
Covered Vaults are live in production, with 15+ vaults deployed across Ethereum, Base, Optimism, and more.
Vault-native-risk transfer, built into the UX: no upfront cost, no lockups, premiums streamed from yield
Proven in real conditions: yoUSD incident payouts completed, deposits reopened
Public access: opencover.com/vaults, custom vaults, and integrations available
One month after the EthCC Vault Summit launch, over 15 covered vaults are live in production, covering strategies across Morpho, YO, Superform, Origin, and more.
The new primitive adds a critical risk-transfer option to the deposit flow of any ERC-4626 compatible vault, making protection natively available across existing vaults, infrastructure, and interfaces.
Live examples include USDC and ETH strategies yielding over 4% covered native APY (up to 10% APY including protocol incentives), the closest DeFi equivalent to risk-free rates.
The first covered vault integrations are live on vaults.fyi, DeBank, Origin, with many more in progress from Fintechs to vault infrastructure providers.
Recent events have also validated the Covered Vaults payout flow. Following the USR incident that impacted the Covered yoUSD vault, the claims process was initiated, and users were indemnified within a week of realizing the loss. With payouts now complete, deposits to the Covered yoUSD vault have reopened.
Ultimately, Covered Vaults usher in a new era of vault-native risk transfer: no upfront payments, no lockups, and no manual renewals. Premiums are streamed directly from the yield generated in the protected vault. For builders, this means protection can be embedded directly into existing products and infrastructure without changing how users interact with vaults.
Try the new primitive at opencover.com/vaults to access the reference UI or if you are looking to integrate vault-native risk transfer into your product, allocations, or workflows, get in touch.
In other news, we’ve shared reflections on the KelpDAO fallout and what it signals for our industry.
OpenCover continues to deliver DeFi-native risk transfer across vaults and transactions, with over $1B in onchain value protected in 2025 alone.
Ready to start earning onchain with peace of mind?
Explore cover products on opencover.com or reach out for tailored onchain risk management.