While the market focused on the @StreamDefi scandal and xUSD's breakdown, a much quieter but far more interesting event unfolded in the @megaeth stablecoin ecosystem, specifically with @capmoney_.
And it created a window of opportunity for those paying attention on @pendle_fi 👇
Everything unfolded just as @Cbb0fe had warned about Stream's ponzi-like model and the scandal involving several curators using user funds to chase unsustainable yields.
As the model collapsed, xUSD suffered a sharp and deep depeg.
Redemption pressure quickly spread across multiple stablecoin projects, and Cap was no exception.
Within just one day, ~$90M of TVL was withdrawn from the platform.
But the key detail is:
✅ The process was smooth
✅ No peg instability
✅ No liquidity crunch
Cap promptly addressed concerns over its reserves, confirming that cUSD is fully backed 1:1 by onchain USDC, secured through smart contracts.
💵Most important: redeemable instantly at parity with zero slippage.
In light of recent market volatility, we would like to clarify that Cap continues to function normally.
As a reminder:
Cap is a 1:1 reserve-backed dollar. Currently, 100% of cUSD is backed by $USDC. All reserves are onchain and controlled by smart contracts. cUSD can be redeemed for USDC at no slippage.
Any USDC loans from Cap are overcollateralized by blue chip assets like $ETH and $BTC. This mechanism protects cUSD holders from yield generation risk.
Despite the clarification of the transparency, the wave of panic still drove TVL down sharply. That led to the staking ratio also dropping significantly.
Though as staking ratios fell, stcUSD's APY surged to 18%, reflecting the sudden imbalance in supply and yield dynamics.
Right after stcUSD's APY spiked, the Pendle market reacted instantly.
Rising Implied APY showed investors rushing to buy discounted YT, aiming to capture the sudden surge in underlying yield, a rare window for those quick to act.
That said, Pendle is for everyone, whether you're a newcomer trying to learn or a pro looking to squeeze alpha from yields like USDe casestudy before.
Just use Pendle!
Tagging Pendle's & Cap's chads:
@tn_pendle
@gabavineb
@pendle_grandma
@imkenchia
@Benjamin918_
@the_weso
@DeFiDave22
@Rightsideonly
@realgigiyip
@PendleIntern
@hzl123331
@Jonasoeth
@crypto_linn
@quant_sheep
@LisaFlorentina8
@0xCheeezzyyyy
@Milk_Trudge
@DeFi_Perryy
@YashasEdu
@belizardd
@chutoro_au
@kenodnb
@JasonvuTech
@EthereumThaila1
@TheDeFinvestor
@monosarin
@ViNc2453
@eli5_defi
@Nomaticcap
@PhenVentures
@mattdotfi
@0xgilllee
@thelearningpill
@KazumaxCrypto
@DaoChemist
@coinfoin_
@St1t3h
@0xFinish
@JiraiyaReal
@twindoges
@Slappjakke
@0xspicexr
@Nick_Researcher
@MeshClans
@0xDeFiDevin
@JuanMontoni
@0xDefiLeo
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