Benjamin Sarquis Peillard - NEXUS Startup Competition Pitch #10: Cap - TOKEN2049 Singapore 2025

My name is Benjamin and I'm the founder of CAP. CAP is a stable coin protocol uh with credible financial guarantees to provide yield to users while protecting their principle. Our team has a long history in DeFi. We come from BP Finance, Fracks, and other long-standing DeFi protocols. Uh we also have researchers from Stanford as well.

Uh we're backed by the world's largest asset managers and HFT firms. Um so what is CAP? CAP is a stable coin protocol for yield and we achieve this goal via two different products. The first is our digital dollar CUSD and the second one is our insured or covered savings product. CUSD is a token that we use to organize all of the deposits in our protocol.

Whether you're a Franklin Templeton user holding Benji or you're a Circle user using USDC, you can enter into our system to earn yield. Additionally, all of the assets in our protocol are interchangeable. So you can mint our stable coin or our digital dollar with a money market fund in Singapore and redeem it for a money market in the US. So this provides a liquidity bridge between these different dollar assets. A couple of the prop uh properties of our dollar uh one is that it's instantly redeemable.

Uh it is completely made on the blockchain. So there's no trust assumptions on the team and we inherit the collateral management of these underlying collaterals such as spen and bled. Our savings product is std. So you can take CSD and stake it and inert yield from financial institutions competing with each other to earn yield. But we don't trust them.

So we make them get credit default swaps via a credit default swap engine to cover the downside for your yield. So this uh turns into a insured private credit engine where financial institutions are generating yield on the dollar. Let's quickly go through the life cycle of a dollar. Let's say you're a Franklin Templeton user earning 4% on Benji, but you want to earn more yield. You will deposit it into a reserve and now the reserve will be earning uh a base rate of 4% from our agreements to Franklin Templeton.

Then you'll have somebody like Susquana that says I can earn more than 4% on that Benji. So they will approach our smart contract and try to borrow. The only way they can borrow is if they can earn more than the T bill rate. But before borrowing, like I said, they need to get a credit default swap. So we built this insurance engine on top of layer and symbiotic that allows Bitcoin and ETH holders to underwrite the activities of these institutions with their Bitcoin and get a steady stream of yield in return.

So finally, they have their coverage and they can borrow from our platform. Um, whoever is borrowing will change depending on market conditions. Sometimes hedge funds will do better than asset managers etc. Our idea is that if you want to generate yield than the dollar, you need to have the whole market participating in this yield generation. If you rely on a team to generate yield, eventually their strategies will become obsolete.

So some of the uh yield generators that we've onboarded already include traffic names like Susana as well as cryptonative funds like RE7. Again, the idea here is to get a wide range of yield generators. What's the go to market story for both the dollar and the the yield product?

Yeah, so the go to market for our yield product is initially getting a lot of defi integrations. We've already within the first three to four weeks met all of our goals. So morpho, oiler, you know, chain link, all these different applications we've already been able to on board. Uh and then next is getting integrations with all of the different restakers. So restakers in crypto are the people that are underwriting the uh the loans here and every single one every single rest on symbiotic which is the platform we're using right now is already currently uh with their test delegation of 5 to 10 million.

How are you kind of making this attractive to because there like a double-sided marketplace of like RE7 me like how much yield are they being able to generate? I I I'm just curious on the economics from that side of the uh product.

Yeah. So, at the end of the day, these folks are borrowing without putting any collateral. So, they're willing to borrow up to the unsecured risk premium of the dollar, which around in crypto, it's around 12 to 15% depending on who you are. And so, these folks are already willing to borrow from other venues at that. So, as long as we can do that here, um they're going to borrow and then they get the difference between their strategy and how much they're borrowing.