Cork provides a programmable risk layer specifically designed for onchain assets like RWAs, vault tokens, and yield-bearing stablecoins. This infrastructure allows asset managers to create custom swap markets that improve redemption liquidity and transparency for various DeFi instruments. The platform enables users to secure protection against impairment or illiquidity events, instantly settling into liquid collateral upon exercise.
Funding
Funding not disclosed
Founders
Product
Problem
The DeFi ecosystem lacks adequate risk management tools for pegged assets like stablecoins and liquid staking tokens, leaving users vulnerable to losses from depegging events. Existing solutions often lack market-driven pricing and composability with other DeFi protocols.
Solution
Cork Protocol offers Depeg Swaps, a risk-pricing mechanism that enables users to hedge against the volatility of pegged assets. The protocol creates fully collateralized, trustless swaps that allow the market to price and trade depeg risk, enhancing market integrity and reducing volatility. Users can buy insurance against a depeg event, provide liquidity to earn yield from risk premiums, or trade the risk of depegging events. Protocols can also integrate Cork to create risk-managed offerings.
Target Audience
Cork Protocol is designed for hedgers, liquidity providers, traders, and protocols seeking to manage and trade the risk associated with pegged assets in the DeFi ecosystem.
Features
- Peg Stability Module (PSM) that receives a Redemption Asset (RA) and creates Depeg Swaps (DS) and Cover Tokens (CT) for a specific Pegged Asset (PA).
- Depeg Swap tokens that can be traded against the Pegged Asset for the Redemption Asset.
- Cover Tokens that receive the assets remaining in the PSM at expiry.
- AMM for freely trading Depeg Swaps and Cover Tokens, allowing the market to set the value of these assets.
- Liquidity Vaults for passively earning yield from trading fees, incentives, and sales of Depeg Swaps.