Cap continues to function normally
No recursive lending, no offchain backing, no team control over funds
In light of recent market volatility, we would like to clarify that Cap continues to function normally.
As a reminder:
Cap is a 1:1 reserve-backed dollar. Currently, 100% of cUSD is backed by $USDC. All reserves are onchain and controlled by smart contracts. cUSD can be redeemed for USDC at no slippage.
Any USDC loans from Cap are overcollateralized by blue chip assets like $ETH and $BTC. This mechanism protects cUSD holders from yield generation risk.
6.93K
100
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.