Cap

Cap is a decentralized finance project running on Ethereum that describes itself as a covered credit protocol. The protocol offers two main products: cUSD, a digital dollar backed by stablecoins issued by regulated institutions and by tokenized funds, and stcUSD, the yield-bearing version of cUSD obtained by staking it. CAP is the protocol's governance token issued on Ethereum; it also has a contract on BNB Chain.

In the system, cUSD reserves are lent to institutional borrowers called operators, and the resulting interest income is passed on to stcUSD holders. Each loan has to be backed by the assets of coverage providers that post collateral in a separate layer; if a borrower fails to pay, the loss is covered from this collateral. CAP holders have governance rights over core parameters such as the composition of reserve assets, the types of collateral required from operators, liquidation thresholds, minting fees and borrower approval.

The CAP price may be affected by the trend in cUSD supply and in the volume of loans issued by the protocol, operators' repayment performance, losses that may occur in the collateral layer, the token distribution schedule and stablecoin regulations. The Cap page on Lzzo.com shows DefiLlama's US dollar reference price; the chart is also built from this source's historical data.