Cap enters its third and final epoch of Frontier. Epoch 3 will begin on October 13th and last until the end of Frontier. The program may last less than the originally-intended 5 month period in the event that certain internal metrics are met.
Participation boost
Note that there will be a boost for users that participate in Cap consistently from earlier epochs. The longer a user participate in Frontier, the better their outcome will be. Users that leave Frontier early will not receive the full benefits of the program.
Epoch 2 recap
Cap’s total value locked has grown 377% since the start of epoch 2, growing from $72M to over $272M. Blue chip DeFi integrations have led cUSD demand, with Pendle and Morpho presenting the largest sources of demand.
Epoch 3 Activities
Caps rates for epoch 3 will remain unchanged. Early depositors will benefit from boosted rewards from their ongoing participation in the program. New depositors will be able to enter the program to receive caps.
cUSD asset holders
Holding cUSD will continue to have a caps rate of 10x.
Pendle
Cap’s Pendle markets have grown to $155M in TVL. These markets represent the largest source of demand for Cap assets. In order to protect YT holders from fluctuating quotes, all Pendle rates will remain the same for epoch 3. Below is a summary of these rates.
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Total YT-cUSD rate = 20x
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Total YT-stcUSD rate = 5x
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Total LP-cUSD rate = 20x
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Total LP-stcUSD rate = 5x
Lending markets
Cap lenders will continue to earn caps for providing liquidity to stcUSD, PT-stcUSD, and PT-cUSD. Lending markets for Cap assets have grown to over $100M since the start of Frontier, with most major vault lenders allocating liquidity to these markets.
On Morpho, the following vaults are lending to Cap assets and earning caps: MEV Capital USDC, Hyperithm USDC, Gauntlet USDC Core, Gauntlet USDC Frontier, and Clearstar USDC Reactor.
On Euler, USDC and USDT deposits on Frontier Cap market receive caps.
Caps rate: 1x caps
Wallet integrations
Throughout epoch 3, Cap will announce wallet integrations for Cap assets on a rolling basis. These integrations will feature limited-time caps distributions. Separate announcements will provide additional information for each integration.
Delegators
Delegators with active borrows receive COGs based on the dollar amount of the delegations. Currently, most delegators on Symbiotic are delegating to operators on Cap. Once Cap’s EigenLayer deployment goes live, restakers on EigenLayer will also earn COGs. Note that these points are completely separate from caps.
Current partner delegators include Renzo pzETH, Concrete, MEV Capital, Re7 Labs, Hyperithm, and Stakestone.
COGs dashboard: https://cap.app/cogs
Product Highlights
As a reminder, 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.