Glossary
Key terms used throughout Tapir Protocol.
Depeg
An event where a token loses its expected peg or value — typically caused by hacks, slashings, exploits, or protocol failures. Tapir defines a depeg as any scenario where the token's value at time T₀ is lower than at T₋₁.
DP Token
Depeg Protection token. Represents a protected claim on the underlying asset. DP holders are insulated from depeg losses (up to 50% coverage) while retaining the full base yield.
YB Token
Yield Boosted token. Represents a yield-enhanced claim on the underlying asset. YB holders earn additional yield by absorbing the depeg risk that DP holders are shedding.
Split
The action of converting a yield-bearing asset into equal parts DP and YB tokens (50/50 ratio).
Unsplit
The reverse of splitting — recombining equal amounts of DP and YB tokens back into the original base asset.
Maturity
The expiry date of a split position. At maturity, DP and YB tokens are redeemable for the underlying asset plus accrued yield (subject to depeg settlement if applicable).
AMM
Automated Market Maker. The pool mechanism that enables trading of DP and YB tokens on the Buy tab.
LP
Liquidity Provider. A user who deposits the base asset into the pool, enabling the Buy market and earning trading fees.
TVL
Total Value Locked. The total capital deposited across a given pool or the protocol as a whole.
APY
Annual Percentage Yield. The projected annualized return, displayed for DP, YB, and LP positions.
Slippage
The difference between the expected and executed price of a trade, typically caused by trade size relative to available pool liquidity.
Base Yield
The native yield generated by the underlying protocol (e.g., staking rewards from weETH, lending yield from sUSDe). Both DP and YB holders retain 100% of this yield — this is Tapir's core differentiator.
Frequently Asked Questions
What makes Tapir different from DeFi insurance protocols? Traditional insurance products (Nexus Mutual, InsurAce, etc.) require capital to sit idle in coverage pools — it earns no yield while providing protection. Tapir keeps all capital fully productive. Both DP and YB holders earn the full base yield of the underlying asset. Protection is funded by yield redistribution, not idle collateral.
Do I need to hold both DP and YB tokens? No. You can hold any ratio. If you only want protection, buy mostly DP. If you want maximum yield, buy mostly YB. The only action that requires equal amounts of both is Unsplit.
What happens during a depeg event? DP holders are made whole — they can redeem their tokens at full value. YB holders absorb the depeg loss (up to 2× the depeg percentage) in exchange for the yield premium they earned. Settlement is rules-based and automatic via the protocol's oracle and settlement engine.
What's the maximum depeg coverage? The split structure provides coverage for depeg events up to 50% of the asset's value. This is implied by the 50/50 token split design.
Can I use Tapir on mainnet? Not yet. Tapir is currently in testnet. Mainnet deployment is planned following a full security audit. Follow Tapir's official channels for launch updates.
I found a bug or have feedback — where do I report it?
Coming Soon — Community channels for bug reports and feedback will be shared here. Stay tuned for Telegram links.
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