Intro

On August 18th, Cap will open to the public on Ethereum mainnet. All protocol functions will go live on this date. In order to track user contribution, “Caps” will be awarded for select user activity that benefit the Cap ecosystem overall.

Caps are not just points, but a tool that will be used to identify key community members that are power users of our protocol. For example, we will reach out to top Caps holders for unique perks, special events, and additional access to the team.

Structure

This period will begin Cap’s Frontier program, a name that is an ode to the initial release of Ethereum network under Ethereum Frontier. Our program will last up to 5 months, or until the protocol reaches certain internal metrics. Frontier will be split into Epoch’s to organize user activity. Participants in earlier epochs will receive more Caps than users that join later.

Frontier is structured to give the most caps to users that start early and sustain their involvement until the program concludes. Users that participate inconsistently will forgo their full potential and only earn a limited number of Caps.

We encourage “frontiersmen” to explore the wide range of activities that will be available throughout the program. At first, activities that qualify for Caps will be very simple which will allow all users to participate.

Products

To get participants situated, Cap’s two flagship products are:

cUSD = cUSD is Cap’s digital dollar asset. It is redeemable for available collateral assets, such as blue chip stablecoins and regulated money market funds.

stcUSD = stcUSD is the yield-bearing version of cUSD. It earns yield from both the base strategies of cUSD’s collateral assets, as well as yield from Cap’s allocations to institutional yield operators.

Note: All loans/allocations to operators from Cap’s reserve are overcollateralized by ETH and BTC derivatives via EigenLayer and Symbiotic.

Minting cUSD

Users will earn points for holding cUSD and for the inaugural 2 weeks, the first cUSD minters will earn a boosted rate of Caps. During that time, earlier depositors will earn more Caps than late depositors. cUSD holders will continue to earn incentives until the end of Frontier. However, rewards to cUSD holders will decay throughout the program.

stcUSD holding will not be incentivized at this time.

Lenders

Depositors on curator vaults on Morpho and Euler that lend to stcUSD markets will earn Caps per dollar lent per day. These points are uncapped. Assets that qualify are stablecoins like USDS, USDC, USDe. Additional lending markets will be added as stcUSD is integrated on new applications.

Additional notes

Prepare for the next epoch - Epoch 2 will involve using cUSD assets on partner protocols. These assets include stcUSD, cUSD, and their derivatives. Epoch 2 details will be released on August 25.

Tracking Caps - Cap balances will be updated daily and shown on the top right of the app page’s nav bar.