Using Tapir

Tapir gives you access to a depeg protection marketplace, allowing you to manage depeg risk or boost yield on yield-bearing assets.

Users can deposit yield-bearing assets into Tapir and split them into Depeg Protection tokens (DP) and Yield Boosted tokens (YB). DP represents a protected claim on the underlying asset, while YB represents a yield-enhanced claim. Both DP and YB holders retain 100% of the base yield from the underlying protocol — no capital sits idle.

Strategies

Buying DP

If you want to derisk your position and protect against depeg events (hacks, slashings, protocol failures), you would buy DP tokens. Holding DP entitles you to redeem your position 1:1 at maturity, regardless of whether a depeg occurred – effectively giving you coverage while keeping your base yield.

For example, if you convert your position to mostly DP with a maturity period of 6 months, you lock in protected yield. Even if the underlying asset depegs by 5%, your DP position is made whole at redemption within the pool's coverage range.

The cost of this protection is a slightly reduced yield compared to holding the unprotected asset.

Buying YB

If you believe a depeg is unlikely and want to maximize your returns, you would buy YB tokens. By holding YB, you are selling depeg protection to DP holders and earning a premium on top of the base yield.

For example, if a base asset carries a 10% base APY and the depeg protection premium adds 3%, holding YB could yield approximately 13%. However, if a depeg event occurs, YB holders absorb the losses — up to 2× the depeg amount.

Providing Liquidity

If you want to earn yield from trading fees without taking a directional view on depeg risk, you can provide liquidity to Tapir's pools. Liquidity providers deposit the base asset and earn fees whenever other users buy DP or YB tokens through the marketplace.