Tapir Mechanics
Tapir is a decentralized depeg protection protocol. It lets you hedge against — or express a view on — depeg events for pegged crypto assets such as stablecoins (USDC, USDT, DAI) and liquid staking tokens (stETH, rETH, wstETH, cbETH).
The protocol works by splitting a base asset into two derivative tokens with asymmetric payoffs tied to whether a depeg event occurs during a fixed observation window. If you believe a depeg will happen, you hold one side. If you believe the peg holds, you hold the other — and earn yield for taking that risk.
Core concepts
Base Asset
The underlying pegged asset being protected (for example, USDC or stETH).
DP Token
Depeg Protection — gains value when a depeg occurs (up to 2x).
YB Token
Yield Bearer — earns higher yield but loses value if a depeg occurs.
Pool
A time-bound market with a fixed observation period and lifecycle.
Oracle
An off-chain price aggregator that determines whether a depeg occurred.
How it works
Tapir's mechanism has three core pillars:
1. Depeg risk splitting
Every Tapir pool lets you split a base asset into two derivative tokens – DP and YB – at a fixed 1 : 0.5 : 0.5 ratio. These two tokens represent opposite sides of the same bet:
DP appreciates if a depeg occurs (protection buyer).
YB earns yield when the peg holds (yield seeker).
At pool resolution, the oracle determines whether the asset depegged. Token redemption values adjust accordingly, but the total value is always conserved: dpValue + ybValue = 200%.
Read the full breakdown in Depeg Risk Splitting.
2. Pool lifecycle
Each pool progresses through four stages:
Active
Users split, unsplit, trade DP and YB, and provide liquidity.
Cooldown
Trading stops. The oracle submits final price data.
Resolution
The depeg outcome is calculated on-chain. Anyone can trigger this.
Redemptions
Users redeem DP and YB for the base asset at their resolved values.
3. AMM (Automated Market Maker)
Tapir uses a Uniswap V3-style concentrated liquidity AMM to facilitate trading between DP and YB tokens. The AMM includes a built-in theta decay mechanism — as the pool approaches maturity, DP and YB prices naturally converge toward 1:1, similar to how options premiums decay over time.
Read more in AMM.
Supported networks
Ethereum Mainnet
1
Primary
Zircuit
48900
Primary
Supported asset categories
Stablecoins: USDC, USDT.
ETH-based: weETH.
BTC-based: WBTC, tBTC, cbBTC, and more.
The protocol is extensible — new asset categories can be added as the ecosystem grows.
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