Cap is pleased to release its full codebase for the general community to review ahead of our launch. In addition to our code repository, we’re also releasing our security audits. This will allow stakeholders to analyze professional reviews of our code before using the protocol.

Cap is a stablecoin protocol built on Ethereum to generate yield for dollar asset holders while protecting them from the downside risk of yield generation. It’s unique architecture allows for a network of institutions to constantly compete to generate yield on dollar-pegged assets. How? Just as Ethereum became the first general-purpose blockchain for building applications, Cap is unleashing the full potential of onchain dollars by building a general-purpose environment for yield accrual.

What Ethereum Did

Before Ethereum, it is best to imagine blockchains like Swiss Army knives; they had several tools like scissors, a small blade, ruler etc. that could perform certain tasks very well. Yet if something else wanted to be added, like a corkscrew, then it would be incredibly difficult to do so.

Purpose-specific blockchains are quite similar to Swiss Army knives where each tool is an application. For example, blockchains like Namecoin, Mastercoin, and NXT all had various different levels of functionality support applications including token issuance, DEX, domain registry, etc. Yet, if any of these blockchains wanted to add a new application such as a lending market, the friction and implementation costs would be quite high. The chain would need to not only build the lending market itself, but then coordinate a hard fork to add it.

Ethereum's innovation of being the first blockchain with a turing-complete programming language (solidity) created a platform where any new application could be built without limits. Now instead of needing to hard fork an entire chain, all builders needed to do is deploy smart contracts on top of Ethereum. This dramatically reduced the costs of application deployment by orders of magnitude. Furthermore, because Ethereum is decentralized, builders didn’t need to ask for permission to deploy. It’s no wonder why Ethereum was called “the infinite machine” because the possibilities of what could be created are truly endless.

Cap Following in Ethereum’s Footsteps

For the past 10 years, stablecoins have been built in the same purpose-specific manner as early blockchains. Whether it be a single collateral type such as a T-Bill, a single mechanism like a CDP, or a single yield strategy such as the basis trade, what all of these stablecoins have in common is that just like early blockchains, their expressivity is pre-defined and limited. But instead of it being for applications, it was for yield generation. If a stablecoin needed to add a new yield strategy, it often required creating an entire new stablecoin or completely modifying the existing ones, which takes technical effort, legal patience, and fragmented liquidity.

Cap is a first of its kind stablecoin protocol, that uses autonomous market allocation to yield strategies while ensuring principal protection. In the same way that any application could be deployed on Ethereum, any yield strategy can be approved and executed by an Operator in Cap. A clear advantage this model has is the ability of Operators to capitalize on opportunities no matter the time or size, increasing the surface area of yield strategies that can be deployed via restaking.

If Ethereum is the infinite machine for applications, then Cap is the infinite canvas for yield.

Cap’s Values

Cap stands atop of two core principles:

• Open protocols: Open-source, autonomous systems foster innovation, transparency, and resilience. Financial guarantees must be credible, based on verifiable code.

• Market driven outcomes: Well-designed rewards and penalties minimize reliance on human judgement.

Ethereum was built on these principles and the belief that the combination of transparency and crypto-economic guarantees will offer the best market outcomes. Cap continues in that lineage as we prepare for launch. As the first Type III Stablecoin, we believe its important to give our community and interested parties full access to our development and progress. This is why we are sharing our audits and code repository below.

Security Audits and Repo

Cap is at the cutting edge of stablecoin innovation and because of this, security is of paramount importance to us. That is why we have completed five separate audits of our protocol from Zellic, Trail of Bits, Spearbit Lead Security Researchers, Recon, and Sherlock.

• Audit - Zellic: March 17th 2025

• Audit - Trail of Bits: May 15th 2025

• Audit - Spearbit Lead Security Researchers: June 23rd 2025

• Invariant Testing - Recon: July 4th 2025

• Audit contest - Sherlock (Completed, Report incoming)

Our code repo can be found here.

What is Cap

Cap is a stablecoin protocol that provides credible financial guarantees via two products: the dollar-denominated cUSD and the yield-bearing stcUSD.

cUSD

cUSD is a digital dollar issued on the Ethereum blockchain that can be used on any blockchain. cUSD is backed by Cap’s Stablecoin Network, a network of blue chip dollar assets issued by regulated institutions with transparent attestations. It is 1:1 redeemable for any of the available reserve assets.

stcUSD

stcUSD is a savings product issued by staking cUSD. Yield is generated via an autonomous layer of regulated financial institutions, or operators, who self-select in and out based on the current hurdle rate of the protocol. The risk of yield generation is covered, meaning users have full downside protection that is verifiable by code.

What to Expect Next

In the coming weeks, expect more announcements of collaborations with institutional partners as well as information on how you can be involved in Cap at launch.