This Wednesday, Cork Protocol raised $5.5 million in a seed funding round led by a16z’s CSX fund and Road Capital. The official announcement on January 21 indicates that this capital injection aims to consolidate Cork Protocol’s tokenized risk platform, designed to provide protection for assets such as stablecoins, yield-bearing RWA tokens, and on-chain vaults.
The significance of this project emerges following a 2025 marked by eight major stablecoin depegs and a record liquidation of $19 billion within 24 hours. Cork’s infrastructure allows users to mitigate financial catastrophes through “cover tokens” and depeg swaps, transforming risk into a liquidity asset. This proposal aligns on-chain finance with the traditional world, enabling more sophisticated hedging strategies for investors.
Following the launch of its “Phoenix” solution on Ethereum last January 8, the protocol’s next step will be to expand the adoption of its decentralized insurance market. From now on, investors will be closely watching the integration of these swaps into major exchanges, as their success will determine the crypto sector’s resilience against future events of extreme volatility.
Source:https://x.com/Corkprotocol/status/2013996086688624903
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