What is CAP?
Cap is a credit market where professional trading firms [Operators] borrow stablecoins and pay interest, while users earn yield or CAPS points depending on how they participate.
Operators
Cap only works with approved institutional trading firms that run market-neutral or low-risk strategies.
They do not automatically borrow user funds; they only borrow cUSD when they find profitable opportunities. If no good trades exist, they simply stay idle, so operator risk comes from strategy quality, not forced deployment.
Tokens in the Cap Ecosystem
Cap uses two core assets:
cUSD
- A unified digital dollar backed by major stablecoins
- Fully redeemable 1:1 and used as the capital that operators borrow
- Holding cUSD earns CAPS points, not yield
stcUSD
- The yield-bearing version of cUSD
- Staking cUSD converts it into stcUSD, which earns the interest operators pay back into the system
- Auto-compounding, but does not earn CAPS
Cap also supports higher-risk variants like YT-cUSD, YT-stcUSD, and their LP versions, which offer higher yield and CAPS production but come with additional risk. These are optional and intended for advanced users.
Risks
Cap reduces many common stablecoin risks, but it is still an on-chain system.
Users are exposed to:
- Smart contract risk
- Collateral risk from USDC/USDT
- Dependencies like price feeds, bridges, and restaking infrastructure
- Optional higher-risk products (YT/LP) if chosen
Nothing removes risk entirely, but Cap’s design distributes it transparently.