Cap Investor Update Q4 2025

Blog

Jan 18, 2026

We're excited to share our Q4 2025 investor update! Over the past quarter, we focused on scaling our cUSD supply, launching on EigenLayer, and onboarding more operators.

In this update, you will find highlights on our progress, upcoming priorities, and asks.

Table of contents

Highlights and Achievements
Review of Q4 goals
Q1 roadmap and goals

Highlights and Achievements

Below is a highlight of our achievements in Q4 2025.

1. October-November Stress Test

Q4 was an exceptionally challenging period for crypto capital markets. On October 10th alone, nearly $20 billion in positions were liquidated across the broader crypto ecosystem.

Against this backdrop, Cap experienced $155 million in redemptions, primarily driven by external market stress. The largest outflow occurred in early November, when $114 million was redeemed following the deterioration of USDC liquidity on Morpho's Ethereum deployment. Several Morpho curators incurred bad debt linked to Stream Finance, triggering significant USDC withdrawals from Morpho and a sharp spike in interest rates. As borrowing costs rose above realized yields, many stcUSD and PT loop participants unwound their leverage by repaying loans and redeeming cUSD. Additionally, Cap recorded $41 million in redemptions on October 10th as Bitcoin and Ethereum prices declined and users withdrew liquidity to cover leveraged positions, a common response during market stress.

Throughout this turbulent period, cUSD consistently maintained its $1 price, all redemptions were processed as designed, and no protocol functionality was impaired. Most importantly, despite extreme market conditions and widespread dislocations, Cap experienced zero slashing events. This outcome validates our deliberately conservative risk parameters, which prioritize resilience, orderly exits, and capital preservation during systemic stress.

2. Cap recovered and surpassed October and November highs

Following both events, Cap's TVL not only recovered but surpassed previous highs. In particular, we have seen a nearly $100m surge in TVL (~30% increase) just in the past month. This reflects both the market's confidence in Cap as a protocol and our team's ability to drive continued growth through adverse market conditions.

Since November’s lending market crash, Cap has led growth on USD loans on Morpho. This was thanks to major curators on Morpho such as Steakhouse, Gauntlet, Clearstar and Hyperithm lending USDC to Cap assets, including stcUSD, PT-stcUSD, and PT-cUSD. Their growing trust in Cap highlights the resilience and robustness of our platform.

3. WisdomTree Onboarding

We have integrated WisdomTree’s WTGXX Money Market Fund as the second reserve asset for Cap. This is a meaningful milestone as it is the first time any lending smart contract has been whitelisted by a regulated asset manager.

4. Launched AVS on EigenLayer

Cap successfully launched its AVS on EigenLayer, audited by Certora. This integration allows EigenLayer restakers to delegate to Cap operators. We’ve already seen YieldNest delegate to Flow Traders and Agra on EigenLayer.

5. Bluechip Financial Institutions Onboarded as Cap Operators

Bluechip financial institutions including Susquehanna Crypto, Amber Group, and Flow Traders have received delegations and joined Cap’s operator pool. These institutions have not integrated with DeFi infrastructure to this degree before, setting a new precedent for TradFi-DeFi collaboration.

Q4 Goals Review

Goals Met

Introduce money market funds into cUSD’s reserve.
Launch EigenLayer AVS with redistribution slashing
Improve UX for new and existing delegators.
Further standardize Cap’s marketing branding.
Have notable presence during NY Blockchain Week and Devconnect

Goals not met

Achieve $1Bn in total value locked

Severe market turbulence resulted in the loss of TVL and general slowing of the yield-bearing stablecoin sector. Despite our recovery, we were unable to reach $1Bn in TVL.

Increase utilization of cUSD’s reserve to over 50%.

Legal onboarding for new operators and delegators has taken longer than we originally anticipated. Given that most of our operators are regulated financial institutions, compliance checks and legal agreements take much longer than with crypto-native institutions. We anticipate the existing deals to be finalized and fully onboarded in Q1.

Redesign website and app page.

The new website is done and will be published in January.

Hire CMO

We decided not to hire a CMO.

Launch cUSD on MegaETH with Mega Mafia integrations.

MegaETH did not launch in Q4, so we were unable to deploy. However, our contracts have already been deployed and will be ready on day 1 as MegaETH launches.

Q1 goals

Product

Launch new website
Deploy on MegaETH

Business

Conduct ICO using Uniswap’s CCA
Successful “stabledrop” for Frontier participants
Launch the second campaign: The Homestead Program
TGE if internal metrics are met
Increase cUSD pool utilization to 30%
Reach $1Bn in TVL