The Risk Protocol (TRP) is a pioneering DeFi primitive that tokenizes risk. Using a novel “splitting” mechanism, we create SMART tokens that are designed to harness crypto volatility.
These SMART tokens give users the ability to both dial-up or dial-down their exposure to volatility in an intuitive frictionless manner, with no margin calls and no liquidations.
Traders can use them to express a risk-on or a risk-off market view based on their risk appetite.
The Risk Protocol is pioneering a new DeFi primitive – Risk Tokenization. Using a novel risk mechanism employing synthetic derivatives, we can split any crypto asset into onchain tradable & composable SMART Tokens.
These SMART tokens give traders the ability to dial-up or dial
down their exposure to risk in an intuitive frictionless manner, with no margin calls and no liquidations.
Traders can initially use our SMART Tokens to express a risk-on or a risk-off market view based on their risk appetite.
Deposit any crypto and split it into 2 different flavors of risk – a low volatility RiskOFF SMART token and a levered RiskON SMART Token.
Keep the SMART token you want and swap out of the other.
Redeem your original crypto at any time.
Below is an example of the significant outperformance possible by picking the right SMART Token each month vs just holding the underlying BTC.
Typically either RiskON or RiskOFF will outperform the underlying cryptocurrency in any period.
SMART tokens are an easy way for you to express your risk-on or risk-off market view. Dynamically picking the right SMART token can dramatically turbocharge returns vs. just holding the underlying crypto.
With SMART tokens, you can “set it and forget it”. Max loss is known upfront and tokens are appropriately collateralized.
SMART tokens abstract away the complexity of options – you simply pick the payoff you want. Basically, if the market is going up, you want to be in RiskON and if the market is uncertain, you want to be in RiskOFF.
With SMART tokens there’s no need to roll over expiring derivative positions. You get automatically rebalanced at zero cost.
