Cap Labs: Insured Yield & the Future of Stablecoins
- Benjamin Sarquis Peillard𝕏
In this episode, Benjamin, the founder of CAP, a stablecoin protocol designed to provide insured yield. The protocol features two main products: CUSD, a digital dollar, and stCUSD, its staked, yield-bearing version. Yield is generated through an "allocation engine" where third-party operators borrow from the protocol's reserve to execute yield strategies. To ensure user deposits, these operators must be vouched for by restakers on protocols like Symbiotic. If an operator defaults, the restakers who vouched for them are slashed, protecting the stablecoin holders' funds. This model shifts risk from the end-user to the restakers, who have a bilateral relationship with the operators they underwrite, often backed by legal agreements.
Topics:
- Benjamin's background and perspective on China
- Journey into crypto and stablecoins
- Hot Take: Stablecoins are not as safe as you think
- The evolution of stablecoin models
- Has DeFi forgotten about decentralization?
- CAP's design: CUSD and stCUSD
- How CAP generates yield with operators and restakers
- The role of restakers and legal agreements
- Integrating with Symbiotic and views on EigenLayer
- The best use cases for shared security
- Navigating the Genius Act and global regulations
- Rebuilding trust in the DeFi ecosystem
- Why the stablecoin space is not too crowded
Links:
Sebastien Couture