Tapir Protocol docs
  • Introduction
  • User Guides
  • Architecture
  • Security & Risk Management
  • Tapir Cast of Characters
  • Tapir FAQ
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  • Overview
  • Core Modules
  • Depeg Protection Module
  • Automated Market Makers (AMMs)

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 where users retain control over their risk exposure while earning yields.

Core Modules

Depeg Protection Module

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

  • Token Splitting: Users split underlying asset into Depeg Protected Asset and 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.

Automated Market Makers (AMMs)

  • DP/YB AMM: Facilitates swaps between protection and yield tokens. Uses a stableswap curve to minimize slippage.

  • PT/YT AMM: Allows trading fixed and variable yield tokens.

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Last updated 2 months ago