Mint Tokens

How to Mint Swap Token and Principal Token to earn a premium or yield

Provide cover against credit and duration risks, by depositing collateral assets into a Cork Pool to mint shares of Cork Principal Token (cPT) and Cork Swap Token (cST).

This "Mint" operation on Cork:

• deposits Collateral Asset into one of many Cork Pools

• mints share tokens (i.e. increases circulating supply of cPT & cST tokens of that Cork Pool)

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How it works

At maturity, Principal Tokens can be redeemed for underlying assets — typically the Collateral Asset, or alternatively some Reference Asset, only if Cork Swap Token holders have exercised their cover (and these are not repurchased by arbitragers before the Cork Swap Token's expiry date).

This mechanism is how Principal Token holders underwrite duration and credit risks.

Cork Principal Tokens are expected to start at a discounted price the moment they are minted, and gradually move toward the value of 1 Collateral Asset as they approach maturity — as long as Cork Swap Tokens are not exercised (or exercised tokens are fully repurchased by arbitragers before the Cork Swap Token's expiry date).

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How to obtain Cork Tokens

You may choose to mint Cork Principal Tokens & Swap Tokens, or you may choose to purchase them from a resale market (such as Airswap OTC):

• If minting principal tokens:

  • You deposit and lock up one Collateral Asset for each Cork Principal Token to be minted. As part of this process, you receive an equivalent amount of Cork Swap Token.

  • This lock applies until the expiry of the Cork Pool (which coincides with the expiry of the Cork Swap Token, and maturity of the Cork Principal Token).

    • To redeem the Cork Principal Token early, you would have to obtain and burn the equivalent amount of Cork Swap Token too, in order to unlock and withdraw collateral assets early. This is called an "Unwind" operation.

  • Your "yield" or premium comes from the sale of your minted Cork Swap Tokens on a resale market (such as Airswap).

• If buying principal tokens:

  • Before maturity, Cork Principal Tokens are sold at a discount (from their expected value at maturity).

  • At maturity, Cork Principal Tokens can be redeemed for an equivalent amount of Collateral Asset (or Reference Asset) from the associated Cork Pool.

  • Increased demand for Cork Principal Tokens on the resale market can drive up their price, reducing the discount (on your purchase) and resulting in a lower implied fixed yield rate to maturity (YTM).

  • Increased supply of Cork Principal Tokens on the resale market can lower their price, increasing the discount (on your purchase) and resulting in a higher implied fixed yield rate to maturity (YTM).

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Mint Both Principal & Swap Token

🎥 Watch the video below to learn how to use the dApp to mint both principal & swap tokens and resell the swap tokens (on Airswap) to earn a premium:

Coming Soon

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Buy Principal Token only

🎥 Watch the video below to learn how to use the dApp to buy principal tokens (on Airswap) at a discount, to earn an implied fixed yield:

Coming Soon