Cap Labs cUSD Soars to $67M via EigenLayer Credit Model
Cap Labs’ new stablecoin cUSD reached $67.85M in circulation within a week, driven by strong demand for its EigenLayer-backed credit model. Built on the Cap Stablecoin Network (CSN), cUSD is a 1:1 redeemable token backed by regulated reserve assets such as PYUSD, BUIDL, and BENJI. Its yield-bearing variant, stcUSD, allows holders to stake cUSD in an ERC-4626 vault, earning roughly 12% APY through a three-party system of lenders, operators and restakers. Operators deploy yield strategies, restakers underwrite credit risk via EigenLayer’s slashing and redistribution mechanics, and stcUSD holders earn a floating return. The model complies with the GENIUS Act by separating yield into stcUSD, a distinct token generated via marketplace borrowing and restaking, avoiding interest-bearing stablecoin restrictions. Market makers like Fasanara, GSR and Amber act as operators, while Gauntlet and Symbiotic provide restaking credit protection. EigenLayer’s programmable risk distribution layer now underwrites financial services, enabling onchain credit guarantees. Cap Labs’ structure could signal a shift in the restaking ecosystem toward financial AVSs and mark a new era of decentralized credit underwriting.
Bullish
Cap Labs’ rapid cUSD adoption and robust credit model underscore strong market demand for EigenLayer-backed yield strategies. In the short term, this momentum is likely to boost liquidity and increase token demand, enhancing trader confidence. Over the long term, compliant yield separation under the GENIUS Act and programmable risk distribution on EigenLayer could drive broader institutional participation and innovation in onchain credit underwriting. Similar to FRAX’s growth trajectory, Cap Labs’ model reduces regulatory risk while supporting sustainable DeFi expansion, making it a bullish catalyst for the market.