Cap USD

The reserve of Cap USD consists of stablecoins issued by regulated institutions, such as USDC, USDT and PYUSD, and tokenized funds such as BlackRock's BUIDL and Franklin Templeton's BENJI. cUSD is a digital dollar that is minted when one of these reserve assets is deposited and burned when it is withdrawn, and it aims to stay pegged to the US dollar. It is issued on Ethereum by the Cap protocol and also has contracts on networks such as MegaETH.

Users can redeem cUSD one-to-one for one of the eligible assets in the reserve. cUSD does not generate yield on its own; when holders stake it and convert it into stcUSD, the income arising from lending the reserves to institutional borrowers is passed on to this version. If these loans are not repaid, the loss is intended to be covered from the assets of separate collateral providers backing the borrower.

The dollar peg of cUSD depends on factors such as the stablecoins and funds in the reserve maintaining their own pegs, the ability to meet redemption demand, how the lending and collateral mechanism works under stress, and smart contract risks. The price shown on the Lzzo.com page is DefiLlama's US dollar reference value; the chart is also drawn from DefiLlama's historical data.