Key Results in Numbers
Partner perspective
What is CAP
CAP is the first stablecoin protocol to outsource yield generation in a programmatically and fully covered manner. It converts leading dollar-backed assets, such as USDC and USDT, into cUSD — a fully redeemable, capital-efficient stablecoin designed for institutional-grade scale.
Its architecture separates risk from yield: liquidity providers mint stablecoins 1:1 against collateral, while specialized operators deploy that collateral into transparent, auditable strategies. The result is a stablecoin with predictable peg integrity, real on-chain backing, and a design built for high-throughput environments where millions can move every minute, a significant step forward from legacy models that treat stability and efficiency as opposing forces.
The Challenge
At the center of CAP’s system sits cUSD, its flagship stablecoin (read more about stablecoins in the 2025 report). Every time a user mints cUSD, the protocol must price collateral assets with extreme accuracy. A few basis points of error on a single transaction might seem negligible; across tens of thousands of mints and redemptions, it becomes a material leak of value, either for the user or for the protocol.
CAP’s previous oracle setup forced an uncomfortable trade-off.
Because CAP prices all collateral assets in cUSD, a minting fee is required to account for potential oracle fluctuations within update thresholds. Hence, with its previous oracle implementation, CAP had to charge a 0.50% minting fee.
That design clashed directly with CAP’s vision. A “new era for digital dollars” can’t be built on top of invisible taxes on stability. CAP needed to:
- Lower minting fees without silently increasing risk
- Price collateral with tight, predictable deviation bounds
- Do this in a way that could scale as TVL grew from tens of millions to hundreds of millions and beyond
In short: CAP needed an oracle that behaved like an integral part of its stablecoin architecture, not a black-box dependency it had to hedge against.
RedStone Solution
CAP needed a collaborator willing to architect price delivery around the realities of stablecoin economics. RedStone worked directly with CAP’s technical team to design a precision-first pricing system that eliminates the hidden tax of data uncertainty.
RedStone deployed a custom price feed for cUSD, configured with a 0.05% deviation threshold, one of the tightest in DeFi, ensuring collateral prices remain aligned with market prices at all times and eliminating the need for broad, user-paid risk buffers.
Support from RedStone also included rapid delivery and operational guarantees: full deployment in roughly two weeks to meet CAP’s launch timeline and a configuration that fits directly into CAP’s existing security architecture without redesigning a single core component.
What emerged was not a generic oracle plug-in, but a stablecoin-aware pricing solution built specifically to help CAP achieve its mission: stability without compromise.
To ensure cUSD maintains peg integrity even as reserves are actively deployed into yield strategies, RedStone designed a reserve-accurate NAV calculation that leverages fresh prices sourced during the same node iteration. These prices are aggregated from multiple independent sources, rigorously validated, and then applied to CAP’s collateral balances before being delivered on-chain.
On every pricing update, the RedStone oracle:
- Retrieves the complete list of collateral assets backing cUSD
- Reads the amount of each asset deposited into the reserve
- Multiplies each reserve balance by its freshly sourced and validated market prices aggregated within the node
- Sums the total value of all collateral assets
- Divides that sum by the current cUSD supply to compute an accurate Net Asset Value per unit
This design ensures that cUSD is priced based on the actual state of collateral, rather than assumptions or synthetic balances. If assets are borrowed, redeployed, or accruing yield elsewhere in CAP’s ecosystem, the pricing remains truthful, and the peg remains defensible. That level of integrity is what enables CAP to scale without introducing hidden systemic fragility.
Business Impact
The collaboration between CAP and RedStone transformed collateral pricing from a risk buffer into a source of measurable economic gain. The stablecoin feeds we deployed for CAP on Ethereum Mainnet operate with 0.05% deviation thresholds, making them the most precise stablecoin price feeds live on Ethereum today. That level of accuracy is roughly 5 times tighter than what is typically possible on mainnet, and it immediately unlocked an 80% reduction in cUSD minting fees: from 0.50% to 0.10%.
That efficiency flowed directly back to users. In the first week post-launch, the reduced fee structure returned over $300,000 to CAP’s community, while the protocol surpassed $70 million in TVL with flawless swap and mint activity. The oracle was never the bottleneck — no stale updates, no price gaps, no degradation during volatility.
Here, you can track how much users have saved in minting fees due to this solution. So far, the savings have exceeded $1,5 million.
But this precision is not just about savings today. Because RedStone prices actual reserve value rather than theoretical token balances, CAP can deploy collateral into yield strategies without introducing hidden peg risk. That architecture gives CAP the confidence to scale to new assets, new operators, and new networks while preserving the fundamental promise of cUSD: redeemability and stability at all times.
CAP now runs on a data foundation that directly supports growth, user experience, and security. Stability, capital efficiency, and scale are finally aligned inside a single system.
TL;DR
- CAP’s original minting design required a high user fee to offset uncertainty in collateral pricing.
- RedStone delivered a precision-first oracle system that prices reserves with 0.05% deviation thresholds.
- Minting fees were reduced by 80%, resulting in more than $300,000 being returned to users in the first week of launch.
- The result is a stablecoin that is safer, more capital efficient, and capable of scaling without passing hidden costs to users.
- Stablecoins, lending markets, and high-throughput chains all depend on precision. RedStone showed that accurate data does not just protect safety. It unlocks growth, improves user economics, and turns the oracle into a competitive advantage.
