Cork Protocol

Cork has raised $5.5M to build the missing tokenized risk infrastructure for digital assets.

Led by @RoadCapMgmt and @a16zcrypto CSX, Cork has raised from investors who recognize the market opportunity of introducing tokenized risk into the digital asset ecosystem.

Three questions to ask before holding any onchain yield:

1) How long does it take to get cash out?

2 ) Which price do you get?
(𝘛𝘩𝘦 𝘰𝘯𝘦 𝘸𝘩𝘦𝘯 𝘺𝘰𝘶 𝘢𝘴𝘬𝘦𝘥 𝘰𝘳 𝘵𝘩𝘦 𝘰𝘯𝘦 𝘸𝘩𝘦𝘯 𝘪𝘵 𝘴𝘦𝘵𝘵𝘭𝘦𝘴?)

3) What happens if everyone asks at once?

If you can’t answer them, the liquidity risk is unpriced.

"We build spikes: cheap versions of an idea that we can scrap easily. Maybe you build it eight times in a week. By the eighth, you understand the trade-offs."

@robdogeth on spikes: build a version of the idea, assess the trade-offs, scrap it, repeat.

When stress hits, everyone wants their money at once. A liquidity buffer is what lets a vault pay them. Here’s how traditional finance builds them, how DeFi has, and a live example of an external buffer in use 🧵

Idea: risk markets where the agents themselves can be underwritten.