Cap USDPrice

(CUSD)

Cap USD (CUSD) is a synthetic dollar fully collateralized by a basket of regulated stablecoins, including USDC, PYUSD, BENJI, and BUIDL. It aims to function as a unit of account backed by existing assets, designed to address the current fragmentation prevalent within the stablecoin market. This approach provides a unified and stable digital currency representation.

CUSD maintains its 1:1 peg to the US Dollar through a smart contract-based Peg Stability Module (PSM). This module enables users to mint new CUSD by depositing reserve assets, burn CUSD to redeem reserve assets, or swap CUSD against any of its underlying reserve assets at their oracle price. The system ensures that upon redemption, funds are returned as a proportional basket of the underlying assets, effectively stabilizing the peg.

Users can perform three main operations. They can Mint CUSD by depositing reserve assets at their current oracle value. They can Burn CUSD to redeem underlying reserve assets, with the system prioritizing the asset price showing the highest deviation. Lastly, they can Redeem CUSD through a multi-collateral process, where the output is calculated as a proportional basket of underlying assets. This mechanism socializes potential losses from any single underlying asset's depeg, enhancing overall stability.

Cap Money's CUSD offers a yield-bearing version known as stcUSD. Yield generation occurs through a network of independent operators who borrow liquidity from the protocol. These operators then execute specific yield-generating strategies. Critically, these operators are insured by capital delegations provided by restaking networks, such as EigenLayer or Symbiotic. This framework provides security and protects stablecoin holders, ensuring the sustainability of the yield mechanism.

Operators are entities, including banks, financial institutions, or high-frequency trading firms, that borrow funds from the Cap protocol to execute various yield-generating strategies. They must meet specific performance criteria and hurdle rates defined by the protocol's smart contracts. Restakers, on the other hand, provide crucial security by collateralizing the operators' activities, often by restaking assets like Ethereum. This mechanism safeguards stablecoin holders, adding a layer of trust and risk mitigation to the ecosystem.

Cap USD (CUSD) tokens can be acquired and traded on various supported decentralized exchanges. Users looking to buy or sell CUSD should refer to the Cap Money protocol's official resources or reputable cryptocurrency aggregators to identify platforms with sufficient liquidity. This ensures access to a broad market for interacting with CUSD.