The Risk Pricing Protocol
Cork's new DeFi primitive, Depeg Swaps allows investors to hedge and trade the risk of their pegged asset (LST/LRTs, Stablecoins, RWAs).
Why should I use Cork?
Novel Risk Market
Composable with DeFi
Market-Driven Pricing
Fully Collateralized
Trustless & Permissionless
Secure & Audited
Who should use Cork?
Cork is built for everyone to expand the use of pegged assets and onchain credit. By creating fully collateralized, trustless, swaps the market can price and trade risk to enhance market integrity and reducing volatility.
Hedger
Buy insurance against a Depeg event and have your position fully protected with Cork.
Liquidity Provider
Protect yourself from impermanent loss while providing liquidity using a Depeg Swap. Offering a new risk adjusted return profile.
Trader
Traders can buy/sell the risk of Deppeging Events, managing and trading their risk accordingly.
Protocols
Set up your own Depeg Swap market for any pegged asset on Cork.
Hedger
Buy insurance against a Depeg event and have your position fully protected with Cork.
Liquidity Provider
Protect yourself from impermanent loss while providing liquidity using a Depeg Swap. Offering a new risk adjusted return profile.
Trader
Traders can buy/sell the risk of Deppeging Events, managing and trading their risk accordingly.
Protocols
Set up your own Depeg Swap market for any pegged asset on Cork.
How does Cork work?
The Peg Stability Module receives a Redemption Asset (RA), like ETH or USDC, and creates Depeg Swaps (DS) and Cover Tokens (CT) for a specific Pegged Asset (PA), like stETH or USDe. The Depeg Swap token trades against the Pegged Asset for the Redemption Asset, so at any time the Depeg Swap and Pegged Asset holdings can be swapped for the underlying Redemption Asset. When the PSM contract expires, the Cover Token holders receive the assets remaining in the PSM. The Depeg Swap and Cover Tokens trade freely in an AMM, this allows the market to set the value of these assets and reinforce stability in the pegged markets.
Use Case
- A depositor sends Redemption Asset (eg Eth) to the Peg Stability Module
- The Redemption Asset is split into Cover Token and Depeg Swap and returned to the Depositor
- A redeemer can send Depeg Swap + Pegged Asset (such as eEth) to redeem the original Redemption Asset from the Peg Stability Module
- The Cover Token receives what is left in the Peg Stability Module at expiry
Cork provides Market-Based pricing for Risk
Backed by
Corks mission is to accelerate onchain credit. It was founded by three serial crypto entrepreneurs who came together to develop a solution for a key unresolved challenge in DeFi: Risk management.
Learn More About Cork
Simple, secure, and designed for worry-free growth.
FAQs
Cork makes it easy to create collateralised swaps on any pegged asset. Similar to Credit Default Swaps, Depeg Swaps enables users to buy, sell, and hedge the volatility of the largest markets in DeFi.
Depeg Swaps are a new primitive that allow buyers to insure against deppegs.
The Cork protocol uses an open market approach to provide cheaper pricing, rewarding liquidity providers with trading fees as well as premiums.
The Cork Peg Stability Module (PSM) takes a Redemption Asset (RA), like ETH or USDC, and creates Depeg Swaps (DS) and Cover Tokens (CT) for a specific Pegged Asset (PA), like stETH or USDe. The Depeg Swap token lets you redeem a Pegged Asset for the Redemption Asset in the Peg Stability Module. This means that if you hold a yield bearing Pegged Asset with a Depeg Swap and there is a depeg, you can still redeem our your original principal from the Peg Stability Module. So as long as you hold the Depeg Swap, your position is protected regardless of the cause of the depeg.
You can freely buy and sell Depeg Swaps and Cover tokens through an AMM, which sets the price for protection and the yield for underwriters. Liquidity for the AMM is provided through our Liquidity Vaults, where you can passively earn a yield from trading fees, incentives and sales of Depeg Swaps.Traders can buy and sell Cover Tokens and Depeg Swaps when they perceive a mispricing of the risk in the market.
Cork is live on testnet, currently we are hosting a trading competition, join it here: Link