Cap Labs has launched its stablecoin cUSD, which has quickly surged to $67.85 million in circulation and has attracted 2,735 holders. This indicates strong demand for their yield-layered digital dollar model, combining regulated reserve assets with EigenLayer-powered credit underwriting. Built on the Cap Stablecoin Network, cUSD is a redeemable stablecoin backed by managed assets. The yield-bearing version, stcUSD, is generated through a system involving lenders, operators, and restakers, providing a floating yield currently around 12%. Cap Labs’ compliance with US stablecoin legislation is central to their model, ensuring that retail investors do not earn direct yields from stablecoins. Their design is part of a growing trend in financialization of Actively Validated Services (AVSs) using EigenLayer for financial guarantees. Cap aims to transition from infrastructure security to on-chain credit underwriting, potentially influencing future financial AVS developments.

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