Cork, the tokenized risk infrastructure, is partnering with Agglayer, a cross-chain settlement layer by Polygon Labs. Cork integrates into Agglayer’s Vault Bridge, providing instant liquidity buffers that ensure depositors can immediately withdraw funds from katana and other Layer 2s, regardless of underlying collateral utilization.

‍

About Polygon

‍

Polygon Labs builds the Polygon ecosystem: an open-source network of Ethereum-aligned scaling protocols and tooling (PoS, CDK) and the Agglayer cross-chain settlement layer that unifies liquidity, users, and state across aggregated chains. Polygon Labs also stewards the POL network token (which replaced MATIC), which secures Polygon PoS, one of the most widely-used blockchains in the world. 

‍

About katana

‍

Katana is a DeFi-focused Layer‑2 chain, incubated by Polygon and built on Agglayer delivering deep, sustainable liquidity and real yield to users. Katana leverages Vault Bridge to funnel bridged assets into Morpho vaults on Ethereum, providing a steady revenue stream that katana deploys as incentives back into the ecosystem.

‍

About Agglayer
‍

Agglayer is a cross-chain settlement layer by Polygon that unifies liquidity, users, and state of aggregated chains, and posts finality to Ethereum. Agglayer’s goal is to unify all web3, regardless of VM or execution environment.

Agglayer Vault Bridge enables chains to earn revenue on idle bridged assets. Katana, through Vault Bridge, has earned over $2.4M+ in Vault Bridge revenue to-date for its ecosystem.

‍

About Cork

‍

Cork introduces a new primitive for tokenized risk, serving as a programmable risk layer for onchain assets such as vault tokens, yield-bearing stablecoins, liquid (re)staking tokens, and RWAs. Cork’s core primitive enables asset managers and issuers to spin up custom swap markets that enhance redemption liquidity, risk transparency, and market confidence for their onchain assets.

‍

Cork x Agglayer

‍

Agglayer's Vault Bridge deposits bridge collateral into Morpho Vaults, which use this collateral to back loans. Due to the typically high baseline utilization rates of these Morpho Vaults (often ~90%, reflecting efficient capital deployment), the amount of collateral immediately available for withdrawals can be limited in periods of intense market volatility as underlying positions unwind. This means that if a large number of users want to bridge back to Ethereum mainnet during volatile periods, there may not be enough instantaneous liquidity available to service such requests.

‍

Cork provides a liquidity buffer which increases the ability to service withdrawal requests from katana across Vault Bridge, regardless of market conditions and underlying utilization rates on Morpho.Liquidity providers deposit liquid assets into a Cork Pool, allowing Agglayer to purchase fully-collateralized Swap Tokens that guarantee liquidity to meet user redemptions in any market conditions. In return, LPs earn native yield plus a risk premium—while Agglayer benefits from a redemption buffer that maintains user confidence, minimizes portfolio rebalancing, and boosts composability. 

‍

Integration Benefits
‍

• Instant Liquidity: Assures both whales and retail users can withdraw assets instantly from katana, enhancing trust and capital efficiency.
  
• Enhanced Yield Opportunities: Enables Cork liquidity providers to earn organic yield from underwriting high-quality, low-risk Morpho Vault tokens.
  
• Hedging: The covered amount is fully protected against potential losses.

‍

For a deeper understanding of how to start with Cork, see the Cork Explainer Video and the Cork documentation.
‍

Do you need liquidity buffers, default coverage, peg stability or protected loops? Connect with us here to explore integration opportunities.