What is Cork?
Last updated
Last updated
Hey there! Glad to see you diving into the Cork rabbit hole and exploring our docs 👀
Cork is the protocol for tokenizing the risk of events for stablecoins and liquid (re)staking tokens.
With Cork, you can hedge, trade, and earn against the risk of events.
Because the world’s assets are moving onchain, and robust markets need risk-management tools to grow.
One of the areas lacking an effective risk management framework is the pegged asset space— such as stablecoins and liquid (re)staking tokens that collectively represent hundreds of billions of dollars at stake.
Until Cork, there was no way to price or hedge against these risks. Cork tokenizes risk, allowing the market to price, trade, and hedge against events.
The end result? A DeFi ecosystem with even more stability, transparency, openness, and financial opportunity.
Core to the Cork protocol is the and its , a novel asset that prices the risk of a event, empowering crypto traders and funds to manage pegged-asset risk.
Each Cork market is structured as a token pair consisting of a and a . For example, in the ETH:stETH market:
The redemption asset is ETH
The pegged asset is stETH
Each Cork market operates with fixed-duration terms and is powered by the , which:
Mints and with a set time to expiry
Runs an on Uniswap v4 to determine pricing
You’ll find more information here on how to:
Additionally, each market has a , which automates liquidity deployment across consecutive terms. Traders can either buy a to hedge against a depeg or buy a to earn a fixed yield as long as no depeg occurs.
✅ — what they are and what causes them
✅ to hedge against a event
✅ to earn a fixed yield (as long as no occurs)
✅ into how the protocol works and the
✅ and its features
✅ and start building