How MegaETH's Flagship Protocol Cap Will Scale Stablecoin Yield with TradFi Giants

The name cap stands for “covered agent protocol.” It refers to the manner by which TradFi giants Susquehanna and Franklin Templeton will have agency over how they compete to earn stablecoin yield on behalf of us DeFi simpletons, holding cUSD as a yield-bearing stablecoin.

The term “covered” refers to EigenLayer and Symbiotic restakers delegating and vouching for these stablecoin yield teams (operators) to backstop any losses in case of an unforeseen exploit as yield is generated. The end result is a near risk-free stablecoin yield promised by the coordination protocol that is cap.

It’s wildly ambitious and potentially scalable to trillions coming onchain.

Like unlocking Morpho for stablecoin yield generation, tapping into a dynamic of competitive markets between both DeFi native teams and institutional players to earn a hurdle rate estimated to range between 6-10% potentially, before cap operators keep any extra stablecoin yield.

Check out the newest episode of The Edge Podcast to go from zero-to-one on what we believe is one of the biggest protocols set to launch in DeFi since Morpho, Fluid, or Ethena!

Thanks to our sponsors for making it possible to share this content for FREE!

| NEWSLETTER CONTINUES BELOW |

Listen to every episode of The Edge Podcast on Pods, Apple, Spotify, and more, by subscribing to your preferred podcast player here!

🔗 Guest Links 🔗

► cap website: cap.app

► cap on X: x.com/capmoney_

► Benjamin on X: x.com/Benjamin918_

► Type III Stablecoins in Stanford Blockchain Review: review.stanfordblockchain.xyz/p/69-type-iii-stablecoins

• Follow @DeFi_Dad on X (Twitter)

• Follow @Nomaticcap on X (Twitter)

• Subscribe to The Edge Podcast via Linktree

• Watch The Edge Podcast on YouTube

• Collect every episode onchain on Pods

Disclosure: 4RC is invested in cap.