Cap Credit System Gains Institutional Traction Amid Backlash Over Airdrop Payouts
Cap's ambitious credit system is gaining traction in the market, despite facing backlash from an airdrop that sparked $23 million in withdrawals and accusations of self-dealing. The protocol issues cUSD, a dollar-backed stablecoin, and stcUSD, its yield-bearing staked version. What sets Cap apart is its unique design, which separates yield from risk by routing capital through institutional operators and a layer of restakers who insure the loans.
The protocol's institutional credit deals have been impressive, with Franklin Templeton, Susquehanna, Triton Capital, Flow Traders, Nomura's Laser Digital, GSR, and IMC Trading investing in Cap. The total value locked in the protocol grew to around $500 million by January 2026, making it one of the largest suppliers of USDC to Aave.
The CAP token was auctioned off in June 2026 at a $106 million fully diluted valuation, roughly 5.5 times oversubscribed. However, the project's founder cut a promised user reward to $4.2 million from roughly $12 million, refocusing payouts on users who lost money on Pendle yield tokens.