Cover Protocol · infinite mint simulation

Miners stake LP tokens into Blacksmith, which mints COVER rewards proportional to a deposit-to-pool ratio. Blacksmith cached the pool's pre-deposit balance — so a huge deposit into a near-empty pool could mint COVER without bound.
Miners deposit LP Balancer pool balance: 100 LP Blacksmith uses cached balance Reward ratio deposit ÷ cached pool COVER minted 0 COVER Circulating supply 42M COVER Market dump $700 → $700
Deposits into Blacksmith
0
COVER price
$700
COVER minted (this run)
0
Cached pool balance
100 LP
Parameters — edit me
5 COVER/LP
100 LP
1.2/s
20 LP
Controls

Illustrative simulation. Defaults mirror the researched Cover Protocol mechanism (Blacksmith's stale-cache bug and its ratio-based reward formula) but deposit sizes, cached balances, and timing are randomized for visualization — not live onchain data. "Exploit near-empty pool" replays the Dec 28, 2020 attack: a large deposit against a near-zero cached balance minted quadrillions of COVER and crashed the price ~95%. Part of The Onchain Experiment Atlas.