Democratic Senator Angela Alsobrooks, a member of the Senate Banking Committee, recently indicated that progress on the legislation may require concessions from both the cryptocurrency industry and the traditional banking sector. According to the senator, meaningful regulation will likely involve balancing the interests of two powerful financial groups with different priorities.

Speaking at an event hosted by the American Bankers Association, Alsobrooks revealed that she is working alongside Republican Senator Thom Tillis to develop a compromise proposal aimed at advancing the legislation. However, she acknowledged that the final outcome may not fully satisfy either side.

Compromise May Be Necessary

Alsobrooks emphasized that legislative progress often requires abandoning the pursuit of a “perfect solution.” In her view, both the crypto sector and banking institutions may need to accept certain trade-offs in order to create a workable regulatory framework.

The senator also warned against leaving the digital asset market without proper oversight. A completely unregulated system, she argued, could introduce significant risks to financial stability. One particular concern involves the possibility that funds could rapidly move from traditional bank deposits into crypto products if adequate safeguards are not in place.

Stablecoin Yields at the Center of Debate

One of the most contentious topics slowing progress on the bill is the issue of stablecoin yield programs. Some crypto platforms offer interest-like returns on stablecoin holdings as a way to attract and retain users.

Banking groups, however, argue that such programs could incentivize customers to move funds away from traditional bank accounts and into crypto platforms. In their view, this dynamic could pose a risk to the broader banking system if it leads to significant deposit outflows.

As a result, several banking organizations have urged lawmakers to include a provision in the Senate’s crypto market structure legislation that would prohibit third-party yield payments tied to stablecoins.

Concerns About Regulatory Gaps

The debate partly stems from perceived gaps in earlier legislative efforts. While the GENIUS Act restricts stablecoin issuers from offering yield directly on their tokens, critics argue that the rule may leave room for external platforms to provide similar returns through alternative mechanisms.

Banking industry representatives believe a broader ban on stablecoin yields would eliminate this potential loophole and prevent the emergence of quasi-banking products operating outside traditional regulatory protections.

The cryptocurrency industry, on the other hand, has pushed back against such restrictions. Many crypto firms argue that yield programs are a key component of their services and play an important role in maintaining competitiveness and user engagement.

This disagreement has become one of the main obstacles delaying the advancement of the broader crypto market structure legislation.

Bank-Like Products Should Meet Bank-Level Standards

Alsobrooks also stressed that digital financial products resembling traditional banking services should be subject to comparable regulatory safeguards. According to her perspective, consumer protection must remain a priority when financial products function similarly to savings accounts or other bank-related offerings.

In essence, the senator argues that if a financial service behaves like a banking product, it should adhere to similar oversight and risk management standards.

Public Opinion Adds Pressure

A recent survey conducted by Morning Consult, involving 4,456 adults across the United States, suggests that public opinion may support tighter oversight in certain circumstances.

The survey found that:

• 42% of respondents support banning stablecoin yields if they pose a risk to bank deposit levels.

• 84% believe companies offering bank-like financial services should follow the same consumer protection standards as traditional banks.

These findings indicate that the debate surrounding stablecoin yields and crypto regulation is not limited to policymakers and industry groups, but is also gaining attention among the broader public.

A Critical Phase for U.S. Crypto Regulation

The United States is still in the process of defining a comprehensive regulatory framework for digital assets. As discussions continue, lawmakers face the challenge of balancing innovation within the crypto industry while maintaining the stability of the traditional financial system.

The ongoing negotiations between banking representatives, crypto companies, and policymakers will likely play a decisive role in shaping the final version of the legislation. Whether a compromise can be reached — and when the bill might ultimately be approved — remains one of the most closely watched developments in the future of crypto regulation in the U.S. financial landscape.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post Senator Talked Crypto Market Structure Bill: When Approval Come? appeared first on Coin Engineer.

Historic Record in the Stablecoin Market

According to the latest figures, the total value of the stablecoin market has exceeded $312 billion, setting a new record. This development is seen as an important signal that liquidity in the crypto market is increasing and that investment activity could accelerate again. Analysts state that the growth in stablecoin supply indicates increasing capital inflows into the market and suggests that investors are becoming more active within the crypto ecosystem. Stablecoins are known as digital assets that help investors reduce volatility risk while trading in the cryptocurrency market. These assets, typically pegged to fiat currencies such as the U.S. dollar, are widely used in crypto trading to provide liquidity and create trading pairs.

The growth in stablecoin supply also suggests that activity in the decentralized finance (DeFi) ecosystem is beginning to increase again. Many financial activities in DeFi protocols — including lending, staking, and liquidity pools — are largely conducted using stablecoins. Stablecoins also enable investors to quickly move between different crypto assets. For this reason, they are widely used by market participants as collateral assets, trading pairs, and liquidity tools. According to analysts, the expansion of the stablecoin market shows that new capital inflows into the crypto ecosystem are accelerating. A large portion of investors entering the market initially prefer to hold their assets in stablecoins while waiting for market opportunities.

“The growth in stablecoin supply indicates that capital flowing into decentralized finance applications is increasing. This suggests that liquidity in the crypto market is strengthening.”

For this reason, stablecoin market capitalization is considered one of the most important indicators for measuring the overall health of the crypto market and investor interest.

What Does Stablecoin Growth Mean for the Crypto Market?

According to experts, the increase in stablecoin market capitalization may signal the beginning of a new wave of activity in the crypto market. Historically, a rise in stablecoin supply has often appeared as a leading indicator before price increases in crypto assets. This suggests that new capital entering the market is initially held in stablecoins before being deployed into other crypto assets.

Capital held by investors in stablecoins can later flow into Bitcoin, Ethereum, and other cryptocurrencies when market conditions become favorable, supporting price movements. Therefore, the size of the stablecoin market is closely monitored as a key indicator for understanding the overall direction of the crypto market and investor sentiment. Analysts note that an increase in stablecoin supply typically signals strengthening liquidity and growing “dry powder” — capital that is ready to be deployed into trading activities.

Evaluation

The total value of the stablecoin market surpassing $312 billion stands out as a major development indicating increased liquidity in the crypto ecosystem and accelerating capital inflows. The growth of DeFi activities, the active use of stablecoins by investors, and the increase in on-chain assets could signal the beginning of a new bullish phase in the crypto market. For this reason, the market capitalization of stablecoins continues to be one of the most closely watched indicators by investors and analysts seeking to understand the overall direction of the cryptocurrency market.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Stablecoin Market Reaches an All-Time High: What Does It Mean? appeared first on Coin Engineer.

The reported conversation is believed to have taken place as policymakers and industry participants debate how to shape the regulatory framework governing cryptocurrencies in the United States. As lawmakers work toward defining rules for the sector, interactions between political leaders and crypto executives are becoming increasingly significant.

Trump And Armstrong Meeting?

According to the claims, Armstrong visited the White House alongside several Coinbase representatives and held a private discussion with President Trump. While specific details about the meeting have not been disclosed publicly, Trump’s subsequent comments on his social media platform, Truth Social, quickly drew attention.

In his post, Trump emphasized the need for the United States to finalize market structure legislation for digital assets as soon as possible. He also criticized the traditional banking sector, noting that banks are currently reporting record profits. Trump stated that the administration would not allow banks to weaken what he described as a strong pro-crypto agenda. These remarks were widely interpreted as a signal of support for the cryptocurrency industry.

Stablecoin Rewards at the Center of the Debate

One of the key disagreements between cryptocurrency firms and banking organizations revolves around how the proposed legislation could address stablecoin rewards. Certain draft amendments reportedly aim to limit or eliminate yield-generating mechanisms associated with stablecoins, a move that many industry participants oppose.

Brian Armstrong has previously indicated that Coinbase cannot support the bill in its current form. According to him, proposed changes could effectively eliminate rewards offered by stablecoins and potentially allow banks to restrict competition from crypto-based financial products.

Following these developments, Senate Banking Committee Chair Tim Scott postponed a planned markup session for the legislation. As of now, no new timeline has been announced for when the committee will resume discussions on the bill.

Increasing Engagement Between the Crypto Sector and the Administration

Despite the presence of official crypto advisors within the administration, Armstrong has reportedly appeared alongside government officials on multiple occasions since Trump’s election victory in 2024. The Coinbase CEO was among the industry leaders invited to events surrounding the presidential inauguration in early 2025.

In addition, Coinbase has been linked to the America250 initiative, a nonpartisan effort associated with a military parade held in Washington, D.C., in July 2025.

As negotiations over the digital asset market structure bill continue in Congress, Armstrong has remained an active participant in the conversation. Earlier in the year, he spoke about the legislation at a cryptocurrency forum held at Mar-a-Lago in Florida.

Organizations representing the digital asset industry continue to argue that maintaining U.S. leadership in financial technology and blockchain innovation is a strategic priority. For this reason, many advocates are urging policymakers to finalize a clear regulatory framework for the crypto market without unnecessary delays.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Alleged Meeting Between Trump and Coinbase CEO! appeared first on Coin Engineer.

What Is the CLARITY Act Designed to Do?

Commonly referred to as the CLARITY Act, the proposed bill seeks to establish a comprehensive regulatory framework for digital assets in the United States. The legislation has already advanced in the House of Representatives, while discussions and negotiations continue in the Senate.

Two primary sticking points remain unresolved. The first concerns whether stablecoin issuers should be allowed to offer yield or rewards to holders. Crypto-native firms argue that yield-bearing stablecoins are essential for competitiveness and innovation. Traditional banks, however, contend that allowing interest-like returns on stablecoin balances could draw deposits away from the banking system and introduce financial stability risks.

The second area of contention involves conflict-of-interest provisions. Some lawmakers are pushing for restrictions that would limit the ability of senior government officials — including the President — and their families to participate in certain crypto-related financial activities. Reports suggest that discussions between industry representatives, banking groups, and policymakers are ongoing, with the possibility of compromise still on the table.

Eight Potential Tailwinds if Passed

JPMorgan analysts outline eight potential benefits should the bill become law.

First, it would clearly distinguish between “digital commodities” regulated by the CFTC and “digital securities” overseen by the SEC, reducing compliance uncertainty. A grandfather provision could allow certain ETF-linked assets such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink to fall under the more flexible CFTC framework.

Second, early-stage projects would be granted a transition period allowing up to $75 million in annual fundraising without full SEC registration while progressing toward decentralization. Third, tokens initially sold as securities could later transition to commodity status once sufficiently decentralized.

Fourth and fifth, clearer rules for intermediaries and custody could enable institutions like BNY Mellon and State Street to directly safeguard digital assets, while also supporting tokenization of traditional securities. Sixth, miners, validators, and software developers would receive exemptions from broker-style reporting during development under certain conditions.

Seventh, small crypto payments could qualify for tax exemptions, and staking taxation would gain clarity. Eighth, by defining stablecoins more as digital cash than investment products, the bill could shift institutional interest toward tokenized deposits.

If enacted by mid-year as anticipated, the CLARITY Act could significantly reshape the regulatory landscape and improve market structure clarity heading into the second half of the year.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post When Will the Clarity Act Be Approved? JPMorgan Gives a Date! appeared first on Coin Engineer.

Bo Hines: Stablecoins Are the Gateway to the Ecosystem

According to Hines, the most critical role of stablecoins is to create an “on-ramp / off-ramp bridge” for investors. Many users encountering digital assets for the first time prefer stablecoins because of their low volatility. Through this process, as they gain experience with cross-chain transfers, wallet usage, and blockchain infrastructure, investors gradually move toward more established assets like Bitcoin.

This transition mechanism indirectly but powerfully supports demand for Bitcoin. Hines describes stablecoin integration as a major blessing for the ecosystem, stating that increased user comfort will also boost interest in Bitcoin.

Regulatory Front: Genius and Clarity Acts

Referring to his time at the White House, Hines also touched on the work being done on crypto regulation. He emphasized that the efforts around the “Genius” and “Clarity” Acts are critical in shaping the framework for the sector.

In his view, the Clarity Act could fill the missing piece in the industry. Hines estimates the likelihood of this legislation passing at 80 to 90 percent. If such a bill becomes law, it could provide a clearer and safer foundation for the digital asset market, especially for stablecoins.

Structural Support for Bitcoin

The widespread adoption of stablecoins means more than just transactional convenience. It also increases global usage of digital dollars, leading to broader mainstream acceptance of crypto infrastructure. This adoption process can strengthen Bitcoin’s position as a store of value.

According to Hines, growth in the stablecoin ecosystem is not a direct price catalyst for Bitcoin and altcoins, but it is a structural factor that expands the demand base over the long term. Combined with regulatory clarity, stablecoins taking on a more central role in the financial system could open the door to a new expansion phase in the crypto market.

This content is definitely not investment advice.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bo Hines Revealed the Catalyst That Will Ignite Bitcoin and Altcoins! appeared first on Coin Engineer.

Timing and Competitive Pressure

The hiring initiative comes shortly after the release of a research report arguing that AI-driven agents could disrupt conventional payment rails. According to that analysis, low-cost stablecoin transfers may enable new commerce models capable of bypassing card networks altogether. Against this backdrop, Mastercard’s latest move appears to be a proactive response to emerging technological and competitive risks in the payments landscape.

Stablecoin Volumes Surpass Card Networks

The scale of stablecoin activity has become difficult to ignore. In 2024, stablecoins recorded approximately $18.4 trillion in transfer volume. On a gross basis, that figure exceeded the transaction volumes of both Visa and Mastercard. While not all of this activity is tied to consumer payments, the trajectory underscores a structural shift in how value moves across digital networks.

Mastercard CEO Michael Miebach has previously indicated that the company is leaning into stablecoins, describing them as a form of currency that can be supported within the network. This framing reflects a broader recognition that blockchain-based settlement systems are gaining legitimacy within mainstream finance.

Visa’s Early-Mover Advantage

Industry data suggests that Visa has positioned itself earlier in the on-chain stablecoin payments space. By the end of 2025, Visa’s annual stablecoin transaction volume had reached approximately $3.5 billion. In addition, crypto card programs such as Rain and Reap have largely relied on Visa’s infrastructure, highlighting the competitive dynamics at play.

A Strategic Inflection Point

Mastercard has recently begun supporting multiple stablecoins on its network. It has also expanded Circle’s USDC payment infrastructure in the Middle East and Africa and has been linked to acquisition plans involving crypto infrastructure firm zerohash.

Analysts argue that the future of payment networks may revolve around machine-to-machine transactions and 24/7 micro-payments. Mastercard’s expanding crypto initiatives indicate that the company is positioning itself for that transition, rather than reacting to it after the fact.

This content is not investment advice.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Mastercard Accelerates Its Crypto Adoption Strategy appeared first on Coin Engineer.

From $50.9 Billion to $41.4 Billion

In November, Binance held roughly $50.9 billion in stablecoin reserves. That figure has now fallen to around $41.4 billion, marking a decline of close to $10 billion in just three months. As a result, reserves have returned to levels not seen since October.

Stablecoin balances on exchanges are widely viewed as a proxy for deployable liquidity. Funds parked in stablecoins often represent “dry powder” ready to re-enter the market. When these balances shrink, it can signal that investors are either stepping to the sidelines or converting digital holdings back into fiat currencies.

Binance Still Dominates, But Signals Matter

Despite the decline, Binance continues to account for approximately 64% of total stablecoin reserves held across all cryptocurrency exchanges. That dominance underscores its central role in global crypto liquidity.

However, when a platform of this magnitude experiences a noticeable contraction in reserves, it becomes a development worth monitoring. A sustained reduction may suggest cooling demand, reduced trading activity, or a broader pullback in risk appetite.

Generally, falling exchange stablecoin reserves indicate that investors are withdrawing liquidity rather than positioning for near-term re-entry into crypto markets. This dynamic can contribute to softer price action and limit the strength of potential rebounds.

Total Stablecoin Market Caps Remain Flat

According to DeFiLlama data, the total stablecoin market capitalization has plateaued slightly above $300 billion since October. This follows two years of significant expansion, during which stablecoin circulation increased by roughly 150%.

The last major contraction occurred in mid-2022 following the Terra/Luna collapse, with recovery only gaining traction in November 2023—about 18 months later.

Fed Policy Adds Pressure

Crypto liquidity is also closely tied to U.S. monetary policy. At present, expectations for a rate cut in March remain low. CME futures markets indicate a 95.5% probability that interest rates will stay unchanged, limiting the likelihood of a near-term liquidity boost for risk assets.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post Binance Stablecoin Reserves Drop Nearly19 Percent in 3 Months! appeared first on Coin Engineer.

As the Senate seeks to advance a bill defining regulatory oversight of digital assets, provisions related to stablecoins have emerged as a primary sticking point between traditional financial institutions and crypto firms.

Transaction-Based Rewards Instead of Balance Yield

A key proposal discussed during the meeting would allow third-party platforms — such as crypto exchanges — to offer stablecoin rewards tied exclusively to transaction activity rather than to idle account balances. Under this framework, users could earn incentives based on usage, but not on simply holding stablecoins.

This distinction is significant. Banking groups have strongly objected to models that resemble interest payments on deposited funds, arguing that such structures could blur the line between stablecoins and bank deposits. According to participants in the discussions, the concept of earning yield on passive balances is now largely off the table, narrowing negotiations to whether activity-based rewards can be permitted.

While no final agreement was reached, attendees described the tone as constructive, with detailed examination of legislative language. Discussions are expected to continue in the coming days.

Banking Sector Concerns: Competition Over Deposits

Banking organizations including the Bank Policy Institute, the American Bankers Association, and the Independent Community Bankers of America have been involved in the talks. Although these groups have not publicly commented on the most recent meeting, their concerns center on the competitive impact of stablecoin rewards.

The U.S. Treasury estimated in April that widespread stablecoin adoption could potentially lead to as much as $6.6 trillion in deposit outflows from the banking system. However, at least one banking representative reportedly suggested that competitive pressures — rather than immediate deposit flight — are the more pressing concern.

Legislative Path Remains Uncertain

This marks the third meeting between the parties following earlier sessions in early February. While the House previously passed a related bill known as the CLARITY Act, the Senate has yet to secure sufficient bipartisan support to move its version forward.

With negotiations ongoing, the final treatment of stablecoin rewards may play a decisive role in shaping the broader regulatory framework for digital assets in the United States.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Tensions Over Stablecoin Continue at the White House! appeared first on Coin Engineer.

Crypto Markets Move on Narratives

Bitwise CIO Hougan emphasizes that crypto markets have historically been driven less by single catalysts and more by overlapping narratives that gain momentum simultaneously. Major bull runs, in his view, rarely emerge from one isolated trend. Instead, they are fueled by several themes reinforcing each other at the same time. Contrary to claims that the market lacks fresh ideas, Hougan believes a strong structural foundation is already in place.

Blockchain Revenue and the Rise of AiFi

The first major pillar is blockchain-generated revenue. Even at current adoption levels, leading networks produce billions of dollars annually, a figure that could scale significantly as usage expands. The second theme is AiFi — the convergence of artificial intelligence and decentralized finance. Hougan expects AI-driven agents to increasingly transact natively using crypto assets, stablecoins, and DeFi protocols rather than relying on traditional banking infrastructure.

Eroding Fiat Trust and Institutional Capital

A third narrative centers on the gradual erosion of confidence in fiat currencies. As trust in government-issued money weakens over time, demand for scarce, non-sovereign assets such as Bitcoin is likely to grow. The fourth theme is institutional adoption. Hougan frames this not as a cyclical trend, but as a decade-long shift involving trillions of dollars entering the crypto space incrementally.

Regulation, Stablecoins, and Tokenization

The fifth pillar is regulatory progress. Clearer frameworks are emerging globally, yet Hougan argues their full impact has not been reflected in market behavior or capital allocation. The sixth narrative is a stablecoin supercycle. Despite rapid growth, global payment systems built on stablecoins remain in an early phase, leaving substantial room for expansion.

Tokenization of real-world assets represents the seventh theme. Equities, bonds, and real estate have only begun migrating on-chain, suggesting long-term growth potential. The eighth narrative focuses on a DeFi revival, supported by improved token economics and clearer regulatory boundaries. The ninth and final pillar is renewed leadership momentum within the Ethereum ecosystem, which Hougan views as approaching a critical inflection point.

A Constructive Long-Term Outlook

Hougan is careful to acknowledge that not every narrative will succeed and that volatility remains unavoidable. However, when viewed collectively, these nine forces point to a strong structural backdrop. Revenue growth, institutional participation, evolving infrastructure, and expanding real-world use cases together form a compelling case for a sustained crypto bull market, potentially benefiting Bitcoin, Ethereum, stablecoins, and DeFi protocols over the coming years.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post Bitwise Reveals: 9 Trend That Will Stand Out in a Bull Market! appeared first on Coin Engineer.

The protocol revolves around two main products: the dollar-based cUSD and the yield-generating stcUSD. This structure enables Cap to provide both a secure digital dollar standard and a savings product with clearly defined risks and downside protection.

Core Vision of the CAP (rCAP) Protocol

Cap focuses on two long-standing fundamental problems in the stablecoin ecosystem: fragmentation and the lack of reliable yield.

Today’s stablecoin market presents a scattered picture with different issuers, incompatible reserve structures, and closed systems. Cap aims to position itself as a neutral and open aggregation layer built on top of this complex structure. Through smart contracts and market mechanisms, it delivers a financial infrastructure where trust is verified by code.

The protocol is built on two main principles:

• Open protocols: Open-source, autonomous systems provide transparency and resilience. Financial guarantees should be based on verifiable code, not human promises.
• Market-driven design: Reward and penalty mechanisms are structured to minimize human intervention.

What is cUSD?

cUSD is a 1:1 redeemable digital dollar issued on Ethereum and usable across different networks. The reserve of cUSD consists of “blue-chip” stablecoins from regulated and transparently audited institutions. These include assets such as USDC, USDT, pyUSD, BUIDL, and BENJI.

The key difference of cUSD is that it is not tied to a single issuer. Users can redeem cUSD 1:1 for any asset in the reserve. The entire process operates on-chain, and no reserve asset is given preferential treatment.

This structure aims to rebuild the principle of “singleness of money” in the stablecoin world. Just as the dollar represents the same value regardless of which bank holds it in interbank systems, cUSD aggregates different stablecoins under a single liquid and interoperable standard.

What is stcUSD?

stcUSD is a yield-generating savings product obtained by staking cUSD. However, what distinguishes stcUSD from similar products is that its yield is fully collateralized and protected against downside risk.

Today, many yield-bearing stablecoin products rely on strategies managed by centralized teams. This creates serious issues in terms of both scalability and security. stcUSD reverses this model.

In Cap, yield generation is performed by an open network of operators. Operators generate yield through advanced strategies such as arbitrage, MEV, RWAs, and similar methods. However, the risk of this yield is borne by delegators through restaked ETH or staked assets.

As a result, users:

• Are not directly exposed to the risk of yield generation
• Can verify the protection of their principal on-chain
• Gain access to competitive yields independent of market conditions

How Does the Cap Ecosystem Work?

Cap is designed as a three-sided marketplace:

• Users: Mint cUSD or stake into stcUSD
• Operators: Implement institutional-grade yield strategies
• Delegators: Provide collateral to secure the system

This structure operates through Cap’s “Shared Security Network” approach. Operators must post collateral to participate in the system. Failed or risky behavior is prevented through automatic penalty (slashing) mechanisms.

Cap Protocol Modules

The Cap infrastructure consists of six main modules:

• Vault: Holds reserve assets and performs cUSD minting
• Lender: Manages borrowing, repayment, liquidation, and interest calculations
• Fee Auction: Converts generated yield into cUSD via Dutch auction
• Delegation: Manages collateral, rewards, and slashing processes
• Oracles: Provides the oracle layer for asset prices and interest rates
• Access Controls: Implements detailed permissioning across the protocol

The system uses Chainlink oracles for price accuracy.

What is the CAP (rCAP) Token?

CAP (rCAP) is the governance and ecosystem token of the Cap protocol.

Use Cases

• Governance:

  • Protocol parameters
  • Collateral management
  • Operator admission processes
  • Fee structures

• Protocol Integration (planned):

  • Staking mechanisms for operators, delegators, and users

CAP (rCAP) Tokenomics

• Ecosystem development: 46.72%
• Team: up to 20%
• Investors: up to 20%
• Community ICO: 10%
• Echo community sale: 3.28%

CAP (rCAP) Investors

Cap has raised a total of $9.90 million to date. The project has received support from leading names in the crypto industry as well as institutional actors with traditional finance backgrounds.

• Tier 1: Sandeep Nailwal, Bryan Pellegrino
• Tier 2: Triton Capital (formerly Kraken Ventures), GSR, Robot Ventures, RockawayX
• Tier 3: Franklin Templeton Investments, Selini Capital, Anagram Crypto, ABCDE, Flow Traders, Laser Digital, Superscrypt, Caladan, Paper Ventures, Breed VC
• Tier 4: Presto Labs, CMCC Global, Auros Global, nonce Classic, Fasanara Digital, Curved Ventures, SCB Limited
• Others: Kain Warwick, Flowdesk, Jason Yanowitz, Fernando Martinelli, Spencer Noon, Ekram Ahmed, IMC Trading, 0xSoju, Namik Muduroglu, Lucas Kozinski, Sam MacPherson, Sonya Kim

CAP (rCAP) Team

The core team of Cap consists of experienced individuals in DeFi and infrastructure development:

• Benjamin – Founder
• Weso – CTO and Founding Member
• DeFi Dave – Head of Growth

Official Links

• Website
• X (Twitter)
• Whitepaper

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post What is CAP (rCAP)? appeared first on Coin Engineer.