Uncollateralized Lending · Review
ActiveCap Review 2026: cUSD, stcUSD and Covered Credit
Cap is an Ethereum stablecoin protocol that issues cUSD and the yield-bearing stcUSD, using underwriters to back unsecured USD loans to borrowers. It holds about $191 million in TVL, but the mechanics rest on credit and underwriting rather than collateral alone.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.8/10
Good
Our verdict on cap
6.8/10Cap suits crypto users who understand credit risk and want dollar yield through a stablecoin backed by underwriters and borrowers. Its strengths are about $191 million in TVL, two listed audits, a stated Franklin Templeton link and zero deposit fees. The main caveat is that loans are unsecured, so safety depends on underwriting quality, and key terms, rates and loss mechanics are not clear. Read the docs and start small.
Score breakdown
How cap scores
- Security
- 6.5/10
- Ease of use
- 6.5/10
- Fees
- 6.0/10
- Features
- 7.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is cap?
Cap is a stablecoin and credit protocol on Ethereum. It offers cUSD, a dollar-denominated stablecoin, and stcUSD, a yield-bearing version. The homepage calls it a covered credit platform for the US dollar and says it is backed by Franklin Templeton.
DefiLlama files Cap under Lending and shows about $191 million in TVL, with a 6.4% drop over seven days. It lists the CAP token, two audits and a listing date of August 2025. The company is headquartered in New York according to the homepage.
The platform links depositors, borrowers who take unsecured USD loans, and underwriters who back those loans for a premium. The homepage also mentions financial guarantees.
This review is based on public data and its homepage. Several homepage figures look like template placeholders and are not used.
How cap works
Cap runs on Ethereum and issues two dollar products: cUSD, a dollar-denominated stablecoin, and stcUSD, a yield-bearing version. The homepage describes a three-sided platform of depositors, borrowers and underwriters.
Borrowers take unsecured USD loans. Underwriters back those loans and earn a premium for taking on that risk. The homepage lists names such as Renzo pzETH, Concrete and StakeStone in these roles, though its figures appear to be placeholders and are not used here. Depositors supply USD, and the yield on stcUSD comes from the platform's lending activity.
The key difference from overcollateralized lending is that each loan is not secured by collateral from the borrower. Safety depends on underwriter capital and borrower credit. Newcomers should treat this as a credit product, not a simple savings account.
7 features
Key features
01
cUSD stablecoin
cUSD is Cap's dollar-denominated stablecoin and the base asset of the protocol.
02
Yield-bearing stcUSD
stcUSD is the yield-bearing product for users who want to earn on their USD deposits.
03
Unsecured USD loans
Borrowers can take unsecured USD loans from the platform rather than posting collateral for each loan.
04
Underwriter model
Underwriters back borrowers' loans and earn an underwriter premium. The homepage lists names such as Renzo pzETH, Concrete and StakeStone.
05
Guarantee marketplace
The site describes a marketplace for financial guarantees, extending the platform beyond plain lending.
06
Zero deposit fees
A blog post says Cap is removing all USD deposit fees, and the team has added in-app help desk support.
07
Listed audits
DefiLlama shows two audits listed for the protocol, though the auditors are not named publicly.
Pros and cons
What we like
- About $191 million in TVL on DefiLlama shows meaningful deposits.
- Two audits are listed on DefiLlama.
- The site says it is backed by Franklin Templeton, a recognizable asset manager.
- Zero USD deposit fees are announced on the blog.
- The underwriter layer adds a risk-absorbing party between depositors and borrowers.
- In-app support is available.
Watch out for
- Loans are described as unsecured, so depositors rely on underwriters and borrower credit rather than on collateral posted by each borrower.
- Yield rates, fee schedules and underwriter terms are not shown in readable form in the available homepage.
- The Franklin Templeton backing is stated on the homepage, but the project does not explain what that backing covers.
- The protocol has been listed only since August 2025, so its track record is short.
- TVL fell 6.4% over seven days in the data, and TVL can shift quickly.
- Public sources name only Ethereum, and public sources do not describe oracle, redemption or depeg mechanics.
cap fees
The only published fee detail is a blog post saying Cap is removing all USD deposit fees. That covers deposits only and does not describe other charges.
Borrower interest, underwriter premiums, withdrawal or redemption costs and any protocol fee on stcUSD yield are not stated. Network gas fees on Ethereum would apply to transactions. Check the Cap app and its documentation for current rates before depositing.
Is cap safe?
DefiLlama lists two audits, but the project does not name the auditors or give their findings, so read the reports before depositing. As with any smart-contract protocol, bugs and oracle or integration failures remain possible. No hacks or incidents are mentioned publicly.
The main structural risk is credit. Loans are described as unsecured, so losses are absorbed by underwriters and, if those are exhausted, potentially by depositors. The project does not set out the exact order. Cap's stated backing by Franklin Templeton is a claim from its own site, and the project does not specify its scope. Regulatory status is not stated. This is not financial advice.
6 steps
How to get started with cap
- 1
Visit the official Cap site and read the FAQ and documentation, especially the sections on underwriters and borrower risk.
- 2
Check the audits listed for the protocol and confirm you are on the official domain before connecting a wallet.
- 3
Set up an Ethereum wallet and fund it with USD stablecoins plus ETH for gas.
- 4
Open the Cap app and review the current cUSD and stcUSD terms, including yield and any fees.
- 5
Start with a small deposit to test the process, and note how redemption works.
- 6
Monitor the protocol's updates, investor reports and TVL over time.
Who cap is for
Cap is for experienced DeFi users who are comfortable with credit-based yield and have read the underwriting and redemption documentation. It is less suitable for beginners who want a simple, collateral-backed savings product.
cap FAQs
What is Cap?
Cap is a stablecoin and covered-credit protocol. It offers cUSD, a dollar-denominated stablecoin, and stcUSD, a yield-bearing version. Its homepage describes it as a platform for USD yield, private credit and financial guarantees.
What are cUSD and stcUSD?
cUSD is Cap's dollar-denominated stablecoin. stcUSD is the yield-bearing product, intended for users who want to earn yield on their dollars. The project does not give current yield figures, so check the app for live rates.
How do underwriters fit in?
The homepage says borrowers take unsecured USD loans and underwriters underwrite those loans, earning a premium for doing so. Depositors supply the USD side. The project does not describe the exact loss-absorption order, so read the documentation before depositing.
Is Cap backed by Franklin Templeton?
The homepage meta description says Cap is backed by Franklin Templeton. The project does not say what form this backing takes, so confirm the details in Cap's own documentation before relying on it.
Does Cap charge fees?
The only fee detail is a blog post titled as removing all USD deposit fees. Other costs, such as withdrawal, performance or network gas fees, are not stated.
Which chain does Cap run on?
DefiLlama lists Ethereum as the only chain and shows about $191 million in TVL. It also lists the CAP token and two audits. The project does not name the auditors.
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Guides
Guides that mention cap
DeFi
What Are Crypto Loans? How They Work, Costs and Risks (2026)A crypto loan lets you borrow cash or stablecoins by pledging crypto as collateral instead of selling it. This guide explains how it works, what it costs, and where it goes wrong.
How we checked
Sources
- 1.defillama.com/protocol/cap
- 2.capcut.com/ai-design
- 3.capcut-tips-video-editor.en.softonic.com/android
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