CAP Integrates Chainlink Price Feeds to Help Power its Shared Security

We’re excited to announce that Cap—a decentralized stablecoin protocol for covered yield at scale—has integrated Chainlink Price Feeds on Ethereum mainnet. By integrating the Chainlink standard, Cap has access to high-quality, tamper-proof price feeds needed to accurately price ETH and stETH-based restaking delegations that secure operator activity, supporting the minting and solvency of cUSD. This will provide our users with stronger assurances that cUSD minting and delegation mechanisms operate securely under volatile market conditions.

Our initial integration involves the use of the ETH/USD Chainlink Price Feed. We chose Chainlink as our preferred oracle solution because its infrastructure is seamless to integrate and time-tested in production. As the most widely adopted price data standard in Web3, Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.

Cap is a decentralized, interest-bearing stablecoin protocol that enables institutions and onchain actors alike to mint cUSD with USDT & USDC. Cap allows whitelisted institutional operators to borrow cUSD’s underlying collateral and perform yield strategies, secured by ETH and stETH delegations from restakers.

In order to help secure our cUSD minting mechanism, we needed access to fresh asset prices that are supplied directly onchain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data offchain and deliver it onchain to be consumed by our application.

“Chainlink Price Feeds provide the secure and reliable data backbone Cap needs to support institutional-grade stablecoin infrastructure. Through the use of the Chainlink standard, we will help advance institutional adoption of blockchain technologies.”— Benjamin.lens, Founder of Cap

About Chainlink

Chainlink is the standard for onchain finance, verifiable data, and cross-chain interoperability. Chainlink is unifying liquidity across global markets and has enabled over $20 trillion in transaction value across the blockchain economy. Major financial market infrastructures and institutions, such as Swift, Fidelity International, and ANZ Bank, as well as top DeFi protocols including Aave, GMX, and Lido, use Chainlink to power next-generation applications for banking, asset management, and other major sectors. Learn more by visiting chain.link.

About Cap

Cap is a stablecoin engine for covered yield. It leverages a collective of operators with specialized skills in yield generation to democratize yield previously untapped by the masses. This yield does not solely rely on crypto-native sources like funding rate arbitrage and token farming, but also on the expertise of traditional institutions like HFT firms, private credit funds, and other companies able to capture large-scale yield. Thanks to shared security markets, Cap is able to cover the risk of operator activity via cryptocurrency restaking. Restakers receive a premium for this coverage. Learn more by visiting cap.app.