Cork Protocol

About Cork Protocol

Cork Protocol develops Depeg Swaps, a risk-pricing mechanism that allows users to hedge against the volatility of pegged assets like stablecoins and liquid staking tokens. This solution addresses the lack of risk management infrastructure in the DeFi ecosystem, enabling market participants to protect their principal and trade risk effectively.

```xml <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. </problem> <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. </solution> <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. </features> <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. </target_audience> ```

What does Cork Protocol do?

Cork Protocol develops Depeg Swaps, a risk-pricing mechanism that allows users to hedge against the volatility of pegged assets like stablecoins and liquid staking tokens. This solution addresses the lack of risk management infrastructure in the DeFi ecosystem, enabling market participants to protect their principal and trade risk effectively.

Where is Cork Protocol located?

Cork Protocol is based in East New York, United States.

When was Cork Protocol founded?

Cork Protocol was founded in 2023.

Location
East New York, United States
Founded
2023
Employees
10 employees
Looking for specific startups?
Try our free semantic startup search

Cork Protocol

Score: 82/100
AI-Generated Company Overview (experimental) – could contain errors

Executive Summary

Cork Protocol develops Depeg Swaps, a risk-pricing mechanism that allows users to hedge against the volatility of pegged assets like stablecoins and liquid staking tokens. This solution addresses the lack of risk management infrastructure in the DeFi ecosystem, enabling market participants to protect their principal and trade risk effectively.

cork.tech500+
Founded 2023 – East New York, United States

Funding

No funding information available. Click "Fetch funding" to run a targeted funding scan.

Team (10+)

No team information available. Click "Fetch founders" to run a focused founder search.

Company Description

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.

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.

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.