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