# Table of Contents

- [What is Cork? | Cork Protocol Docs](#what-is-cork-cork-protocol-docs)

---

# What is Cork? | Cork Protocol Docs

* * *

_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 [depeg](https://coinmarketcap.com/academy/glossary/depeg)
 events for stablecoins and liquid (re)staking tokens.

With Cork, you can hedge, trade, and earn against the risk of [depeg](https://coinmarketcap.com/academy/glossary/depeg)
 events.

* * *

### 

[](#why-is-cork-needed-now)

Why is Cork Needed Now?

_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 [depeg](https://coinmarketcap.com/academy/glossary/depeg)
 events.

The end result? A DeFi ecosystem with even more stability, transparency, openness, and financial opportunity.

* * *

### 

[](#how-cork-works)

How Cork Works

Core to the Cork protocol is the [**Peg Stability Module**](/core-concepts/peg-stability-module)
 and its [**Depeg Swap**](/core-concepts/depeg-swap)
, a novel asset that prices the risk of a [depeg](https://coinmarketcap.com/academy/glossary/depeg)
 event, empowering crypto traders and funds to manage pegged-asset risk.

Each Cork market is structured as a **token pair** consisting of a [**redemption asset**](/core-concepts/redemption-asset)
 and a [**pegged asset**](/core-concepts/pegged-asset)
. 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 [**Peg Stability Module**](/core-concepts/peg-stability-module)
, which:

*   Mints [**Depeg Swaps**](/core-concepts/depeg-swap)
     and [**Cover Tokens**](/core-concepts/cover-token)
     with a set time to expiry
    
*   Runs an [**Automated Market Maker**](/core-concepts/trading-market-amm)
     on **Uniswap v4** to determine pricing
    

Additionally, each market has a [**Cork Vault**](/core-concepts/liquidity-vault)
, which automates liquidity deployment across consecutive terms. Traders can either buy a [**Depeg Swap**](/core-concepts/depeg-swap)
 to hedge against a depeg or buy a [**Cover Token**](/core-concepts/cover-token)
 to earn a fixed yield as long as no depeg occurs.

* * *

### 

[](#getting-started-with-cork)

Getting Started with Cork

You’ll find more information here on how to:

✅ [**Learn about De**](/overview/what-is-a-depeg)
[**peg Events**](/overview/what-is-a-depeg)
 — what they are and what causes them

✅ [**Buy Depeg Swaps**](/user-guides/buy-and-sell-cover)
 to hedge against a [depeg](https://coinmarketcap.com/academy/glossary/depeg)
 event

✅ [**Buy Cover Tokens**](/user-guides/earn-premiums-and-fees)
 to earn a fixed yield (as long as no [depeg](https://coinmarketcap.com/academy/glossary/depeg)
 occurs)

✅ [**Dive deeper**](/core-concepts/depeg-swap)
 into how the protocol works and the [FAQ section](/faq/frequently-asked-questions)

✅ [**Explore the Cork dApp**](/user-guides/buy-and-sell-cover)
 and its features

✅ [**Integrate with the Cork Protocol**](/integrate/v1)
 and start building

#### 

[](#dont-get-screwed-get-cork)

**Don’t get screwed—get Cork!** 🚀

[NextWhat is a Depeg?](/overview/what-is-a-depeg)

Last updated 8 days ago

---