Circle’s USDC Enters Cap Stablecoin Network via Aave’s Base Rate

Cap, a stablecoin protocol with credible financial guarantees, is excited to announce Circle’s USDC as its next addition to the Cap Stablecoin Network, as well as the integration of Aave and Yearn for base yield.

The Cap Stablecoin Network (CSN) is an open network for cUSD’s collateral management and yield generation. CSN facilitates instant, secure and low-cost exchanges between collateral assets. Assets used for yield generation are fully protected with transparent onchain guarantees.

Holders of Circle’s USDC will now be able to mint cUSD (Cap’s digital dollar) and swap for other blue-chip dollar assets in Cap’s Stablecoin Network. While being held in the CSN, idle USDC will be deployed in Aave’s signature core market and will provide a base return on USDC which will be autonomously managed by Yearn’s vault standard. Once USDC is borrowed from the CSN, it will return the active yield from operator activity.

About Cap

Cap is a stablecoin protocol that provides credible financial guarantees via two products: the dollar-denominated cUSD and the yield-bearing stcUSD.

cUSD

cUSD is a digital dollar issued on the Ethereum blockchain that can be used on any blockchain. cUSD is backed by Cap’s Stablecoin Network, a network of blue chip dollar assets issued by regulated institutions with transparent attestations. It is 1:1 redeemable for any of the available reserve assets.

stcUSD

stcUSD is a savings product issued by staking cUSD. Yield is generated via an autonomous layer of regulated financial institutions, or operators, who self-select in and out based on the current hurdle rate of the protocol. The risk of yield generation is covered, meaning users have full downside protection that is verifiable by code.

About Circle

Circle is a regulated global fintech company that issues and manages USDC, a fully backed, dollar-pegged stablecoin running on many of the world's leading blockchains. Designed to represent US dollars on the internet, USDC is backed 100% by highly liquid cash and cash-equivalent assets so that it's always redeemable 1:1 for USD. Currently USDC is one of the largest stablecoins live today with over $64 billion in circulation.

About Aave

Aave is the largest decentralized lending/borrowing protocol, securing over $50B in deposits. Users can supply assets to earn interest and borrow against their digital assets onchain.

About Yearn

Yearn is a blue-chip yield aggregation protocol that utilizes vaults and that automate allocation into the best yield opportunities onchain. Vaults benefit users by socializing gas costs, automating the rebalancing process, and shifting capital as opportunities arise.