Cap Marks One Year Onchain With 430% Growth in Average Underwriter Capital
Private Credit
Cap, a credit platform backed by financial guarantees, celebrated its one-year anniversary by reporting a 430% increase in average underwriter delegations, rising from $39.6 million to $209.6 million in its second half. The platform demonstrated resilience during the October 2025 liquidation cascade and the Stream Finance contagion, maintaining full redemption capabilities while competitors faced liquidity freezes. By separating borrowers from underwriters who escrow their own capital, Cap addresses the principal-agent problem inherent in traditional credit markets. The platform's second year of operation saw the onboarding of major institutional players including Susquehanna Crypto, Flow Traders, ether.fi, M11 Credit, and FalconX. Additionally, Cap integrated institutional assets such as Franklin Templeton’s BENJI and WisdomTree’s WTGXX, further bridging traditional finance with onchain infrastructure. With over 88% of its cUSD supply staked, the protocol maintains a competitive yield of 5.11% compared to a 3.29% peer average. This growth signals a shift in onchain credit from experimental yield-chasing toward utility-driven institutional infrastructure.
Key points
- ▸Average underwriter delegations grew 430% to $209.6M in the platform's second six months.
- ▸Utilized borrow liquidity increased 4.3x to $55.26M during the same period.
- ▸Institutional partners now include Susquehanna Crypto, Flow Traders, FalconX, and M11 Credit.
- ▸The platform successfully processed all redemptions during the October 2025 market stress events.
Background
Cap is a decentralized private credit platform that utilizes smart contracts to automate loan underwriting and enforcement. It solves the principal-agent problem by requiring underwriters to escrow their own capital against loans, ensuring that risk-takers are financially accountable for their decisions. This architecture allows depositors to earn yield on dollar-pegged assets while maintaining transparency and onchain verifiability.
Relevance
7.5/10