Shelter is ready-to-go infrastructure for products that trade risk. Creators launch insurance, options or credit swaps without building anything. Underwriters earn yield, leave the moment they want, and keep their capital usable as collateral. Hedgers get protection whenever they need it.
The core market: hedgers buy protection, underwriters back it with capital. Open to both at any hour.
OverviewWhat it is
A Market Where Risk Changes Hands
Hedgers pay a premium to be protected against a specific event. Underwriters supply capital and earn that premium for carrying the risk. A payoff module decides what happens if the event occurs.
Hedgers choose the cover they need and pay the premium up front
Underwriters back that cover with capital and earn the premium
If the event happens, the payoff module pays the hedger
If it does not, underwriters keep what they earned
Illustrative market
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What happens?
Nothing goes wrong. The hedger paid for peace of mind, and underwriters earned the premium for being there. Risk changes hands. It does not disappear.
ProtectionsUse case · Hedgers
A Protection for Every Risk
What hedgers can buy is a core part of the value. Depeg, queued liquidity, impermanent loss in AMMs, options, credit default swaps and RWA insurance are all payoff modules on the same infrastructure. Pick one to see how it pays.
+ Your own payoff moduleNew payoff modules can be created for any risk.
Illustrative payoff module
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Depeg cover pays the gap between the coin's price and its peg. At 0.75 it pays a quarter of the cover, at 0.50 half, and in full if the coin goes to zero. Every protection is a payoff module: pick another and the shape changes, not the infrastructure.
Vault layerCapability · curated vault
Vault Shares as Collateral
Underwriters, the liquidity providers, are expected to deposit in a curated vault rather than directly in a market. The vault sits on top of the core markets and underwrites the ones its curator selects. Depositors get share tokens back, and those tokens work as collateral in third-party integrations such as money markets: post them, borrow against them, and the vault keeps underwriting the whole time.
The place underwriters deposit, instead of going to a market directly
Curated: the vault underwrites the markets its curator selects
Underwriters receive share tokens for their deposit
Share tokens are accepted as collateral in money markets and other integrations
Capital earns premium and stays usable at the same time
Illustrative vault
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Underwriters deposit in a curated Vault instead of a market. It puts their capital to work in the markets its curator selects and collects the premium.
Worked exampleCollateral · wstETH / ETH
Collateral With a Known Worst Case
Take a depeg market for wstETH, underwritten with ETH. Two cases bound what a share token can be worth. If nobody exercises, the vault keeps its ETH and the value stays the same. In the worst case, hedgers swap all their wstETH for the ETH covering them, and the vault is left holding the full reference asset.
Value stays the same: while the peg holds, the vault keeps its ETH and keeps earning premium
Worst case: the peg breaks and the vault ends up holding the full reference asset, wstETH
A share token is then worth the price of wstETH: that is its worst case
The rule is the same in every market: the worst case is the price of the reference asset
Illustrative: a wstETH / ETH depeg marketValue stays the same
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Which case?
Peg holds: nobody swaps, so the vault keeps its ETH and keeps earning premium. A share token is backed by that ETH, so its value stays the same as the ETH, and a money market can accept it as collateral.
Fast exitCapability
Unlock Your Collateral Anytime
When an underwriter wants out, they are out. Fast exit is immediate: no queue, no notice period, no waiting for cover to end. The market takes over the open exposure at its going price and the underwriter is paid in that same moment.
Leave the moment you decide: no queue, no notice period
Paid at once, however much of your capital is backing live cover
The cost of leaving immediately is a price the market sets at that moment
Or wait in line and be paid in order, with no exit price
Illustrative exit, capital of 100
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How much of your capital backs live protection?
Exit immediately: the market takes over your open exposure at its going price, so you are paid in the same moment, with no queue and no notice. Or wait in line and be paid in order, with no exit price. The more of your capital is in use, the longer waiting takes and the more leaving now costs.
Price discoveryCapability
Internal Price Discovery
The premium for cover does not come from an oracle or a predetermined pricing module. The market finds it on its own: more demand for cover pushes it up, more capital underwriting pushes it down.
No oracle to trust, to pay for or to fail
No predetermined pricing module
It moves with demand for cover and the capital available
Every market finds its own price for its own risk
Illustrative market price
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Demand for protection
Capital from underwriters
Demand surges, so the price rises. Capital arrives, so it eases. No oracle, formula or committee is involved: the price is discovered inside the market.
MaturitiesCapability
No Forced Maturities, No Rollover
Maturities are never forced. Each hedger decides the day their own cover ends, with no calendar of fixed dates to fit into. If a market creator wants fixed, discrete maturities for a product, that is their call alone. And even then, nothing has to be rolled over.
No prefixed maturities: each hedger picks the day cover ends
Fixed, discrete maturities exist only if the market creator chooses them
Products that normally need a rollover don't: the same capital carries on to the next date
Illustrative cover, 120 days
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Who decides when cover ends?
Elsewhere, cover has to end on one of a few fixed dates. Hedgers pay for days they don't need, and the capital behind the cover has to roll over at every date.
Always availableCapability
No P2P Matching, Pooled Liquidity Always Available
Hedgers do not wait for a counterparty. Capital is already in the market, so protection is available at the going price at any hour, with no peer-to-peer matching.
No one to find and no order to wait on
Buy at the going price, in the size you need
Capacity is the capital in the market, not one matched counterparty
Always on, so the products built on it are always on
Illustrative request for cover
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Both hedgers ask at the same moment
No peer-to-peer matching. Capital is already in the market, so a hedger buys cover at the going price whenever they like, in any size the market can back.
HooksCapability
Customisable Hooks for Any Rule
A market is already very flexible. Hooks let you customise it further without touching the market itself. KYC gates and fixed maturities are just two examples of a multitude: a hook can add any rule a product needs, and you can combine as many as you like.
Gate access: KYC for regulated or permissioned products
Fix shared maturities, with no rollover issues
Fees, size limits, approved underwriters: a few more of the many options
Write your own hook for a rule only your product has, or ask us to build it
Illustrative market with hooks
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Plug hooks in or out. These are examples.
A hook adds a rule without touching the market itself. KYC gates and fixed maturities are only two examples; these six are a few more. Anything a product needs can be a hook, and you can combine as many as you like.
CreatorsUse case
Launch Without Building Anything
Creators are anyone building financial products that trade risk. Shelter is the ready-to-go, highly customisable infrastructure underneath. You choose the parts and deploy through a factory: no code to write, no development cost, and launching is free. And when your use case is special, we provide custom development and consultancy to build it with you.
You choose, you don't build: pick the assets, a payoff module and any hooks
Launch in one deployment through a factory, and it is free
No development cost, and the audit cost lies with Shelter
A custom use case? Custom development and consultancy from the Shelter team
Illustrative launch
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What are you building?
Show a step
You choose the assets: the exposure to protect and the capital that backs it. Nothing to build.
Underwriters and hedgersUse case
Yield for Underwriters, Protection for Hedgers
Underwriters
Passive liquidity providers deposit in a curated vault and earn yield from the risk it underwrites, while their liquidity stays usable and unlocked through the vault's synthetic asset.
Earn the premium for backing risk
Keep capital usable as collateral through vault share tokens
The premium a market discovers is readable on chain, which makes Shelter a primitive other protocols can compose with. AMMs did the same for prices, and became feeds that others build on.
Live and on chain, found by the market itself
Readable by lending markets, dashboards and structured products
More markets means more risks with a live price
Illustrative signal, not an integration
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Test the feed
The way AMMs became price feeds, a risk market becomes a risk feed. The premium it discovers is readable on chain, so other protocols can build on it.
SectorsWho it is for
Built for Businesses That Carry Risk
Wherever there is risk that someone wants to hand off and someone else is willing to carry, there is a market to build. These are the segments we are designing for.
Stablecoin issuers and treasuries
Depeg cover for the coins they issue or hold.
AMMs and liquidity providers
Cover for impermanent loss, so providing liquidity is easier to size.
Lending and money markets
Cover for what they lend against, and vault share tokens as collateral.
Staking and liquid staking
Protection for funds waiting in withdrawal queues.
Tokenised real-world assets
RWA insurance, with KYC-gated markets where a product needs them.
Credit and structured products
Credit default swaps, and structured products built on the same markets.
Options and derivatives
Option payoffs launched without building a venue.
DAOs, funds and treasuries
Hedge an exposure, or earn a premium on capital that would sit idle.
Intended segments only. No partners, customers or integrations are implied.
Private beta · Early design stage
One infrastructurefor every risk market.
Creators launch without building. Underwriters earn without locking their capital. Hedgers get protection whenever they need it. Shelter is the infrastructure underneath.