Y2K is a decentralized, open-source cryptocurrency project focused on providing a platform for hedging, leveraging, and speculating on the risks associated with pegged assets such as stablecoins and token wrappers. It utilises a Proof of Stake consensus mechanism, offering features like Atomic Swaps, Lightning Network support, and SegWit compatibility. Y2K aims to protect users from stablecoin depegging risks through structured products designed for exotic peg derivatives .
Y2K operates as a decentralized, on-chain platform, enabling users to manage volatility risks associated with stablecoins and other pegged assets. It uses smart contracts to facilitate the creation and management of insurance products like the Earthquake Vault, allowing users to hedge against, speculate on, or underwrite depegging risks by depositing ETH as collateral. Y2K leverages Chainlink oracles for price monitoring and uses the Arbitrum blockchain platform .
Y2K Finance offers a variety of use cases, primarily within the DeFi and cryptocurrency sectors:
Y2K Finance launched on October 31, 2022, with the introduction of its key products, Earthquake and Tsunami. The platform aims to provide comprehensive risk management and hedging solutions in the DeFi space. Key developments include the release of Y2K V3: Tsunami, which brought enhancements such as 24/7 market coverage, deeper liquidity, and cross-chain liquidity provision. Y2K continues to evolve by integrating with various DeFi protocols, expanding its market presence and functionality .