Just here to learn more about the stablecoin project
- Perpetual exogenous yield that was previously not accessible to users
CAP is able to perpetually offer competitive yield from scalable sources like MEV, Arbitrage, and novel RWAs. This is because it functions less like standalone dApps & more like a protocol. It constantly sources the best available strategies for current market conditions.
As underlying strategies shift to maintain competitiveness, no additional actions will be required from users.
- First stablecoin to fully cover yield generation risk
Many interest-bearing stablecoin designs leverage a similar model to Celsius. These Celsius models, dubbed CeFi or CeDeFi, take user tokens in the form of loans. Much like Celsius, these models expose users to uncovered/unhedged risks: custodian risk, centralized decision making by teams, and asystematic risks of protocols they integrate.
Even simple models like TBill wrappers and centralized yield-bearing stablecoins fall into this category. They do not offer users any credible commitments or recourse.
CAP’s shared security model will ensure that users won’t have to worry yield generation risks.
Nice one, bro
Much information contained here
Still losing my mind
Can someone please elaborate on the following sections of the Docs?
#1
“Stablecoins are any tokens that follow the price of other assets. They can be pegged to fiat currencies, arbitrary RWA assets, and even other cryptocurrencies.”
- Is the idea that CAP stablecoins are “stable” insofar as they maintain a stable peg with the asset(s) to which they are pegged? Trying to understand how you define “stable”.
#2
“CAP stablecoins will come in various denominations, such as USD, BTC, and ETH. That is to say, CAP stablecoins will follow the price of those assets. This will allow users the freedom of directional exposure, depending on their preferences.”
- So, as an example, I could own a CAP stablecoin which is (1) pegged to a cryptocurrency, and (2) denominated in BTC?