Algorithmic / under-collateralized stablecoin
Cap (cUSD / stcUSD)'s assessment for RD-F-069 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
cUSD is collateral-backed (stablecoins: USDC, PYUSD, BENJI, BUIDL; plus wrapped BTC derivatives and yield-bearing tokens) — NOT algorithmic in the Terra/Luna sense. However, the peg defense relies on the novel SSN underwriting mechanism (operator restaked collateral via Symbiotic + EigenLayer as performance bonds/slashing insurance). This mechanism is untested at scale; slashing latency risk (14–17.5 days) could create temporary under-collateralization during rapid redemption events. Fractional reserve adds Aave V3 counterparty dependency. Classification: collateral-backed but novel-mechanism dependent — Ethena-adjacent yellow class, not pure-algo red.
Sources #
- URLSymbiotic blog — Universal Staking Guarantees with Caphttps://blog.symbiotic.fi/universal-staking-guarantees/retrieved 2026-05-17
- OAK Research — Cap Money: cUSD not algorithmic, collateral-backedhttps://oakresearch.io/en/reports/protocols/cap-money-layer-verifiable-yield-stablecoins-mega-ethretrieved 2026-05-17
Methodology #
Classify whether the protocol is an algorithmic or under-collateralized stablecoin design per curator classification.
See the full factor methodology and distribution across all protocols →