> For the complete documentation index, see [llms.txt](https://docs.nookapp.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nookapp.xyz/feature-release/feature-release-covered-earning-sources-beta.md).

# Feature release: Covered Earning Sources (beta)

By [Joey Isaacson](https://www.linkedin.com/in/joeisaacson/), Co-founder of Nook

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This week, we rolled out a new covered earning experience. Launching two new covered earning sources. As part of our beta rollout, we are excited to share this with you and get your feedback.

We designed Nook to connect you to open and available earning sources. And that earning landscape is always changing across markets and networks. With over 10 earning sources launched across five networks, and **$1B in transactions**, Nook has shown that people want access to open markets. But one gap we have noticed in the ecosystem - and piece of feedback we have repeatedly heard from you, our customer, is that coverage is missing as an option.&#x20;

So we addressed that head on.

#### What we launched

Since we launched our Coverage Pilot in 2025, we have worked directly with the OpenCover team to address the feedback you shared. Customers did not want caps, delays, or limits.

So we took that feedback and removed them.

You now have access to two covered earning sources across Core and Frontier.

100% covered by OpenCover.

No caps. No limits. Deposit and withdraw without worrying about whether your full balance is covered.

With OpenCover, you have peace of mind knowing that your position is protected against covered hacks and liquidity crunches on the market side.

OpenCover is an onchain risk-transfer platform that helps individuals, fintechs, protocols, and institutions protect their positions against losses from smart-contract exploits and certain severe economic failures.

#### What is OpenCover? And how does it work?

OpenCover provides covered vaults without requiring customers to pay a separate upfront premium by partnering with Nexus Mutual, an onchain risk-sharing mutual for digital assets.

In simple terms, Nexus Mutual provides the underwriting capital and claims infrastructure, while OpenCover embeds that protection directly into the vault experience.

Depending on the specific vault and its coverage terms, protection may include losses caused by: Smart-contract bugs and exploits, Oracle manipulation or failure, Governance attacks, Liquidation failures or bad-debt events, Stablecoin depegs, Custodian or transaction-related risks.

OpenCover facilitated more than $1 billion in onchain value covered during 2025.

Here is how its covered vaults work:

A customer deposits into a standard earning vault. The resulting vault shares are then deposited into an OpenCover Covered Vault. Protection remains active for as long as those shares remain deposited.

The cost of coverage is continuously deducted from the vault’s yield rather than charged as a separate upfront premium.

Since partnering with OpenCover for our coverage pilot in 2025, we have seen more than **$5 million deposited** into these covered sources. There is no fixed policy period or lockup, and underwriting capital is reserved onchain through Nexus Mutual.

In simple terms, OpenCover is turning a vault and a separate insurance policy into one protected earning product.

For example, if a vault earns 6% and coverage costs 1%, the customer may receive a net covered yield of approximately 5%. The exact protection available is governed by the policy wording and coverage annex for each vault.

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#### How do I earn with these new sources?

Like other sources on Nook, the new covered sources are integrated straight into the app. No need to bridge funds, swap, or pay fees. Simply deposit to Nook straight from your bank, and then re-allocate your funds to the new sources from USDC by following the steps below.

1\. Make sure your app is up-to-date

2\. Go to the third tab → Select Core or Frontier category

3\. Scan for the sources with "100% covered"

4\. Transfer existing funds

#### Questions, feedback - or anything you want to share?

We extended coverage to the Nook platform for you. So you can earn across high yield sources, and now, covered sources - helping you find the right balance of earning.

But without your feedback, this would not have been possible.

So we want to hear directly from you about your beta experience and expectations as we begin to rollout these new sources. Please share any questions or feedback by replying to this email or reaching us at <team@nookapp.xyz>.

Happy earning.

Joey

Cofounder, CEO of Nook