[Proposal] Integrate PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026 on Euler Yield

Summary

This proposal seeks approval to integrate PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026 on Euler Yield as collateral-only assets. Cap focuses on providing “verifiable money” through compliant, yield-generating stablecoins, using EigenLayer restaking for credit mechanisms and risk protection. The protocol outsources yield generation to operators while ensuring principal safety via restakers and slashing incentives, making it “blow-up-proof” compared to traditional yield-bearing stables.

Fundamentals

scUSD and stcUSD are core tokens of the Cap Protocol, a stablecoin system leveraging decentralized operators and restakers for yield generation and risk coverage.

  • cUSD is a compliant, dollar-denominated stablecoin backed by regulated blue-chip reserves, 1:1 redeemable stablecoin pegged to USDC. It maintains stability through over-collateralized operator loans and slashing mechanisms via EigenLayer restaking, ensuring full backing at all times. Idle reserves are deployed to Aave for base yield accrual.

  • stcUSD is a staked version of cUSD, functioning as a yield-bearing token. Users stake cUSD to mint stcUSD, earning yields from operator deployments (after a hurdle rate deduction). Yields are distributed autonomously, with slashing protections redistributing funds to maintain cUSD parity.

Liquidity

PT-cUSD-29Jan2026 currently maintains around $36.2M in liquidity while PT-stcUSD-29Jan2026 holds approximately $11M in liquidity.

Risk Parameters

Caps

Asset Supply Cap Borrow Cap
PT-cUSD-29Jan2026 10M -
PT-stcUSD-29Jan2026 5M -

IRM

No IRM necessary for collateral only assets.

LTVs

Collateral Debt Asset LLTV
PT-cUSD-29Jan2026 USDC 87%
PT-cUSD-29Jan2026 USDT 87%
PT-cUSD-29Jan2026 PYUSD 87%
PT-cUSD-29Jan2026 RLUSD 87%
PT-cUSD-29Jan2026 USDe 85%
PT-cUSD-29Jan2026 eUSDe 85%
PT-cUSD-29Jan2026 USDtb 85%
PT-cUSD-29Jan2026 rUSD 85%
PT-cUSD-29Jan2026 AUSD 82%
PT-cUSD-29Jan2026 frxUSD 82%
PT-cUSD-29Jan2026 USD1 82%
PT-cUSD-29Jan2026 mUSD 82%
PT-cUSD-29Jan2026 wM 82%
Collateral Debt Asset LLTV
PT-stcUSD-29Jan2026 USDC 87%
PT-stcUSD-29Jan2026 USDT 87%
PT-stcUSD-29Jan2026 PYUSD 87%
PT-stcUSD-29Jan2026 RLUSD 87%
PT-stcUSD-29Jan2026 USDe 85%
PT-stcUSD-29Jan2026 eUSDe 85%
PT-stcUSD-29Jan2026 USDtb 85%
PT-stcUSD-29Jan2026 rUSD 85%
PT-stcUSD-29Jan2026 AUSD 82%
PT-stcUSD-29Jan2026 frxUSD 82%
PT-stcUSD-29Jan2026 USD1 82%
PT-stcUSD-29Jan2026 mUSD 82%
PT-stcUSD-29Jan2026 wM 82%

Oracle

Pendle TWAP oracles for PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026, crossed with the fixed rate oracle for cUSD.

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[Gauntlet] Integrate PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026 on Euler Yield

Summary

Gauntlet recommends integrating PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026 as collateral-only assets on Euler Yield with the following parameters.

Fundamentals

cUSD is a stablecoin issued by the Cap, backed through a restaked credit model.

In this system, Operators (borrowers) access liquidity from the vault, while Restakers (guarantors) provide 150–200% on-chain overcollateralization using assets such as restaked ETH. This collateral protects cUSD holders in case of default, with additional off-chain credit agreements allowing Restakers to recover losses legally if needed.

By shifting collateral responsibility from borrowers to guarantors, Cap enables more flexible liquidity access while maintaining strong, verifiable backing and on-chain transparency.

Caps

Asset Supply Cap Borrow Cap
PT-cUSD-29Jan2026 12M -
PT-stcUSD-29Jan2026 5M -

Pendle liquidity is ~$35M for PT-cUSD-29Jan2026 and ~$11M for PT-stcUSD-29Jan2026.

LTVs

Gauntlet recommends the following LLTVs :

Collateral Debt LLTV
PT-cUSD-29Jan2026 AUSD 0.82
PT-cUSD-29Jan2026 mUSD 0.82
PT-cUSD-29Jan2026 frxUSD 0.82
PT-cUSD-29Jan2026 USD1 0.82
PT-cUSD-29Jan2026 USDe 0.85
PT-cUSD-29Jan2026 USDtb 0.85
PT-cUSD-29Jan2026 PYUSD 0.85
PT-cUSD-29Jan2026 RLUSD 0.85
PT-cUSD-29Jan2026 USDT 0.85
PT-cUSD-29Jan2026 USDC 0.85
PT-cUSD-29Jan2026 wM 0.85
PT-cUSD-29Jan2026 rUSD 0.85
PT-cUSD-29Jan2026 eUSDe 0.85
PT-stcUSD-29Jan2026 AUSD 0.82
PT-stcUSD-29Jan2026 mUSD 0.82
PT-stcUSD-29Jan2026 frxUSD 0.82
PT-stcUSD-29Jan2026 USD1 0.82
PT-stcUSD-29Jan2026 USDe 0.85
PT-stcUSD-29Jan2026 USDtb 0.85
PT-stcUSD-29Jan2026 PYUSD 0.85
PT-stcUSD-29Jan2026 RLUSD 0.85
PT-stcUSD-29Jan2026 USDT 0.85
PT-stcUSD-29Jan2026 USDC 0.85
PT-stcUSD-29Jan2026 wM 0.85
PT-stcUSD-29Jan2026 rUSD 0.85
PT-stcUSD-29Jan2026 eUSDe 0.85

Borrow LTV is recommended to be 2% below LLTV

Oracle

We recommend using Pendle TWAP oracles for PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026, crossed with the fixed rate oracle for cUSD.

1 Like

Objective Labs is aligned with Gauntlet’s proposal to integrate PT-cUSD-29Jan2026 and PT-stcUSD-29Jan2026 on Euler Yield. The proposed integration expands support for stablecoin yield markets and maintains consistency with existing Pendle PT listings. Objective Labs also supports the risk assessment and parameter recommendations outlined by Gauntlet.