The rails for risk Price, hedge and transfer any observable onchain risk Backed by @RoadCapMgmt and @a16zcrypto CSX
Ethereum
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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.
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"Reinsurance looks like it's still operating in the 1990s"
It can take 90+ days to piece together exposure spread across separate books, while capital remains locked in deals that are difficult to exit. A shared onchain ledger could make exposure easier to verify and open up the reinsurance market to more outside capital.
Cork’s co-founder @Philfog with @YellowMedia_HQ. Link below ⤵️
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Earlier this month, an agent bought risk coverage directly through another agent on Cork, with no human involved.
This was a major milestone; the first fully autonomous, agent-to-agent risk trade to happen on Cork's infrastructure. @Zyfai_'s agent requested coverage on Cork's order book. An underwriter agent (Claude in a loop with the Cork MPC) priced it. Zyfai accepted, and it settled onchain on Base 🧵
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DeFi users want two things: better risk-adjusted yield, and real protection for it. This is an agent achieving both in one autonomous step; a risk transfer between independent parties, with agents on both sides of the trade.
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The same dollar of collateral can back a position on one protocol, get wrapped into a receipt token, and back a second position on an entirely different protocol. Neither protocol is wrong about what it's holding. They're just both betting the other one never gets called at the same time.
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"If we had built mortgage-backed securities onchain, 2008 never happens."
@Philfog sat down with @TheCryptoMavs to unpack why risk management may be one of the biggest missing pieces in onchain finance.
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"Instant withdrawal" is true for exactly as long as you're the only one asking. The morning everyone asks at once, instant just meant first.
A protocol that promises instant withdrawals isn't false, it's just describing a pool of available liquidity ready to pay whoever shows up.
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Leverage doesn't create risk, it just changes the deadline.
An asset can fall 20% over two years and most people holding it outright never feel forced to act, they simply wait.
The same 20%, arriving in a single bad week on a leveraged position doesn't leave time to wait.
Same risk, same size, wildly different amount of time to respond to it.
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A protocol with $10B in TVL and one whale in a loop position doesn't have $10B in liquidity. It has one large, leveraged bet wearing a big number.
Loop a position five times and you haven't just multiplied your reported TVL. You've multiplied your exposure to the same underlying asset breaking at every layer.
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There's no such thing as a risk-free rate onchain.
There's just a rate where the risk hasn't shown up yet.
Price it before it does.
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Ten tokens, ten different names, ten different logos.
If they all redeem into the same underlying asset, they're not ten different risks.
That's one risk, split across ten tickers.
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Somewhere between 65 and 80% of crypto trading volume now runs through algorithms, not a person clicking the buy button.
That part of onchain solved itself.
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That isn't surprising once you separate the two problems:
Automating execution is a speed problem: more compute, faster code, tighter latency.
Automating risk is an information problem: knowing what's likely to go wrong, and by how much. Speed problems get solved first because they're easier.
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