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The Edge Podcast

How Cap Plans To Scale Stablecoin Yield With TradFi Giants Like Susquehanna and Franklin Templeton

Apr 5, 2025
Discover how a groundbreaking protocol aims to revolutionize yield generation for stablecoins by collaborating with institutional giants. The conversation dives into the nuances of different stablecoin types, exploring their risks and benefits. Innovative yield strategies using high-frequency trading desks are unveiled, alongside discussions on regulatory challenges and the integration of traditional finance with DeFi. Anticipation builds for the upcoming launch and its potential to reshape the DeFi landscape through collaboration and advanced economic incentives.
01:06:06

Podcast summary created with Snipd AI

Quick takeaways

  • CAP aims to revolutionize yield generation for stablecoins by establishing a system where operators are held accountable through smart contracts.
  • The podcast discusses the emergence of yield-bearing stablecoins, highlighting their growing importance in an inflationary environment compared to traditional fiat stablecoins.

Deep dives

Introduction to CAP and Its Purpose

CAP is a stablecoin protocol designed to programmatically outsource yield generation. It aims to commoditize the process of yield generation by establishing specific rules that operators must follow to produce returns for users. This model is compared to the way validators operate on Ethereum, allowing anyone who complies to participate as an operator. CAP seeks to provide a more efficient and innovative approach to managing yield generation within the evolving DeFi landscape.

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