Is Cap Safe?
Risk Grade: C (43/100)
Cap is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Elevated risk — novel three-sided marketplace with untested coordination mechanics and centralized stablecoin counterparty exposure, offset by growing TVL adoption.
Cap is a stablecoin protocol on MegaETH offering cUSD (backed by stablecoin basket) and stcUSD (yield-bearing version), with $211M TVL. Its C+ grade reflects the novel three-sided marketplace where operators borrow user capital for DeFi strategies backed by delegator-restaked assets — a design with no established track record, combined with centralized stablecoin counterparty risk.
TVL
$208M
Mechanisms
5
Interactions
4
Value Grade
D
Key Risks for Cap Users
cUSD is backed by centralized stablecoins (USDC, USDT) and money market funds. If any of these underlying assets experience a freeze or depeg, cUSD backing is directly affected.
Operators borrow deposited stablecoins to deploy into external DeFi strategies for yield. If strategies lose money, delegators who restaked assets may have their assets slashed.
Cap is built on MegaETH, a relatively new Layer 2 network. The protocol's guarantees depend on the security and uptime of this underlying chain.
The three-sided marketplace model is novel and untested at scale. Coordination failures could lead to inadequate risk coverage.
Top Risk Factors
- •cUSD is a synthetic dollar backed by a basket of centralized stablecoins and money market funds, introducing custodial counterparty risk — if underlying stablecoins or MMF providers face insolvency, cUSD backing is directly impacted.
- •The three-sided marketplace (users, operators, delegators) introduces novel coordination risks: operators borrow user capital for yield strategies, and delegators underwrite operator performance via restaking.
- •stcUSD yield depends on operator performance in external DeFi strategies, creating indirect exposure to every strategy operators deploy.
- •As a new protocol on MegaETH (a new L2), Cap inherits the security assumptions and maturity risks of the underlying chain.
Risk Score Breakdown
Cap's highest risk area is Mechanism Novelty (9/15). Here's how each dimension contributes to the overall 43/100 score:
Read the Full Cap Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?