Architecture

Overview

Tapir Protocol’s architecture is designed to balance risk management, yield optimization, and capital efficiency. It combines modular components, automated market makers (AMMs), and time-bound pools to create a flexible ecosystem that allows users to retain control over their risk exposure while earning yields from their yield-bearing asset, subject to their risk profile.

Core Modules

Depeg Protection Module

This module allows users to hedge against yield-bearing asset devaluations (e.g., slashing, hacks) while retaining yield. Key elements include:

• Token Splitting: Users split the underlying yield-bearing asset into a Depeg Protected Asset and a Yield Boosted Asset.

• Depeg Pools: Time-bound pools (e.g., 90 days) where DP/YB tokens are traded.

• AMM Integration: A decentralized exchange for swapping DP and YB tokens, with liquidity providers earning fees.

Example:

• Alice splits Token_A into DP and YB. She sells YB to buy more DP, reducing her risk.

• Bob buys YB to amplify his returns, betting no depeg will occur.

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Automated Market Makers (AMMs)

• DP/YB AMM: Facilitates swaps between depeg protected and yield boosed tokens. Uses a custom curve to minimize slippage & take account the time value.