Collateralization under stress
Cap (cUSD / stcUSD)'s assessment for RD-F-068 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Novel SSN underwriting model. cUSD is 'fully backed at all times' per docs but under a multi-operator default scenario with simultaneous redemption demand, the 14-day Symbiotic epoch queue and 17.5-day EigenLayer delay create a structural window where slashing enforcement lags redemption demand. Sherlock judging Issue #417 documents a vault-withdrawal-timing attack where restakers can front-run epoch boundaries to exit before slashing executes, leaving protocol with insufficient collateral. Default LTV 50%, liquidation threshold 80% per Symbiotic docs — provides headroom under single-operator default but not multi-operator concurrent failure. Collateralization adequacy under correlated stress cannot be quantified from available data. [?]
Sources #
- URLSherlock judging #417 — Vault withdrawal timing / theoretical bad debthttps://github.com/sherlock-audit/2025-07-cap-judging/issues/417retrieved 2026-05-17
- Cap docs — Symbiotic delegation: LTV 50%, liquidation threshold 80%, 14-day withdrawalhttps://docs.cap.app/concepts/delegation/symbioticretrieved 2026-05-17
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →