The first protection protocol on Stellar

Default protection for tokenized bonds.

Bondholders buy cover against default.
Underwriters fund the reserve and earn premiums.
When a bond defaults, payouts settle through a zero-knowledge proof, not a claims process.

Non-custodial · Permissionless · Private positions · Proof-settled

What is live on testnet
3
Instruments deployed
1
Settlement proven on-chain
ZK
On-chain verifier
Stellar
Network · Testnet
Overview

One reserve.
Two ways in.

Protection is a market between the holders who want cover and the underwriters who back it.
Parallar runs both on-chain, and settles between them by proof.

For bondholders · Buy cover

Protect a bond position

Hold a tokenized bond and worried about default? Buy cover and pay a premium.
If the issuer misses a coupon, you are paid from the reserve.
The amount is fixed by a published formula and a proof.

  • +Automatic, proof-settled payout on default. No claim to file.
  • +Your cover size stays private, stored only as a commitment.
  • +Backed by reserves that are funded before any cover is sold.
For bondholders ›
For underwriters · Provide the reserve

Back the protection, earn premiums

Supply the collateral that backs payouts and earn the premiums buyers pay.
Deposit into a non-custodial vault.
The protocol enforces that total cover can never exceed your reserve.

  • +Earn premium yield from cover buyers.
  • +Non-custodial: only a verified proof can move the reserve, never an operator.
  • +Solvency is enforced on-chain; withdrawals are open outside a settlement.
For underwriters ›
How it works

Coverage, settled by proof

Read the full mechanism ›

No claims department, no committee, no admin key.
A default either produces a valid proof, or it does not.

01 / Underwrite

Fund the reserve

Underwriters deposit collateral and earn premiums. Cover sold can never exceed the reserve, enforced on every purchase.

02 / Cover

Buy protection

Bondholders buy cover against default. The amount each holder buys stays private, stored only as a commitment.

03 / Prove

Settle a default

Anyone runs the settlement program. It reads the on-chain payment record and proves who is owed by a published formula, in zero knowledge.

04 / Payout

Verify and pay

The contract verifies the proof on Stellar and releases each payout from the reserve. This is the only way the reserve moves.

Properties

Built for institutional credit, on-chain

Non-custodial and fully funded

The reserve is held in claw-proof, freeze-proof assets. Total cover can never exceed reserves. No one can pull the pool.

Proof-settled, not adjudicated

Payouts are authorized by a verified zero-knowledge proof, not a claims process. If a bond paid on time, no valid proof can exist.

Private positions

How much cover each holder buys is sealed on-chain. The protocol enforces the totals without ever seeing the parts.

Permissionless settlement

Anyone can generate a proof and settle. There is no privileged operator and no admin override.

Real-world assets

Designed for tokenized bonds and credit. One generic core serves every instrument type, pinned to its rules forever.

Verifiable on Stellar

One proof verified by Stellar's native BN254 pairing host function. Cheap enough to run on-chain, every settlement.

On testnet

Deployed, and proven with a real settlement

See everything that is live ›

This is a hackathon build on Stellar testnet, not a launched market.
The contracts are live, and a full default-to-payout has executed on-chain.
Verify any of it on the explorer.

Instrument
Collateral
Settlement contract
Status
Factory-deployed credit_v1 instruments. The third has settled; the others demonstrate the factory and the one-transaction replication.
Verified on-chain · paid

A bondholder went unpaid. The reserve paid the cover buyer.

A real default-to-payout on testnet. The settlement program proved exactly what was owed, the contract verified the proof, and the payout left the reserve. The cover amount stayed private throughout.

default proof verified on Stellar
EventSettled
Paid to cover buyer800
Reserve after payout200
Authorized byZK proof
NetworkStellar Testnet
View the transaction on the explorer ›