The Edge Podcast
Can DeFi Handle The Next Depeg? How Cork is Pricing The Risk
Mar 21, 2025
Phil Fogel, Co-founder and CEO of Cork Protocol, discusses innovative risk management in DeFi. He explains how Cork enables users to hedge against stablecoin depegs, unlocking new trading opportunities. Insights on the systemic risks of USDT and how Cork could have mitigated the Luna UST depeg are intriguing. Phil also dives into the concept of risk premiums and explores user dynamics that appeal to both traders and institutions, emphasizing the importance of technology in ensuring market stability.
52:20
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Quick takeaways
- Cork Protocol facilitates DeFi innovation by allowing users to hedge against stablecoin and token depegging risks, promoting financial security.
- The increasing institutional interest in cryptocurrencies underscores the necessity for advanced risk management tools like tokenized risk solutions in DeFi.
Deep dives
Growing Institutional Interest in Crypto
There is a significant increase in interest from large corporations and financial institutions in incorporating cryptocurrency into their operations. This trend sees many banks and asset managers actively seeking ways to integrate crypto, particularly through stablecoins, which are seen as effective tools for payment processing and global money movement. The rapid growth of stablecoins, with a market cap exceeding $300 billion, showcases the potential for mainstream adoption as these assets offer stability amid market volatility. As the crypto market matures, the need for sophisticated risk management solutions like tokenized risk tools will become essential for facilitating capital in this space.
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