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Today, we are proud to announce that Cap has been listed on Pendle with a pool for stcUSD, enabling users to have agency over their yield preference. Users will now have the option to opt into fixed yield with Principal Tokens (PT) or floating variable yield with Yield Tokens (YT). This listing comes in the first week of launch and is emblematic of the reception Cap has received. This will be the first of many Pendle markets listed for Cap.
Cap is a stablecoin protocol powered by credible financial guarantees that has two core products: cUSD and stcUSD.
cUSD is a dollar-denominated stablecoin backed by a basket of regulated payment stablecoins such as USDC and redeemable 1:1 for any reserve asset.
stcUSD is the yield-accruing version of cUSD where yield is generated by an open market of operators made up of market makers, proprietary trading shops, etc. and underwritten by restakers.
Pendle is a protocol that tokenizes yield into a trading layer for users to speculate and hedge on, letting anyone split a yield-bearing asset into two pieces, the PT & the YT, and trade them on their AMM.
PT (Principal Token)
Represents the principal and acts as a “zero-coupon bond.” PT can be bought at a discount and redeemed 1:1 for the accounting asset at maturity, enabling fixed yield.
YT (Yield Token)
Represents all future yield from the underlying until maturity. Hold YTs if you want floating yield exposure or to speculate on yields rising.
To put it simply, PTs are for users who are risk averse (since its a fixed yield) while YTs are for users who have a higher risk appetite (because yields are floating).
If you are interested in learning more about Pendle, the team created an excellent video series that breaks down the basics of yield tokenization, Principal Tokens, Yield Tokens, liquidity provisioning on Pendle, and advanced trading strategies.
Enter the stcUSD market in the Pendle App
Swap from any supported token into PT-stcUSD or YT-stcUSD:
PT: Hold to maturity and redeem 1:1 for the accounting asset, realizing your fixed yield.
YT: Hold to collect streaming yield until maturity, or trade out anytime.
Once you hold PT-stcUSD or YT-stcUSD you can decide to either swap before or hold until maturity.
Maturity matters: At maturity, PT redeems 1:1; YT stops earning new yield.
Slippage, gas, and incentives vary by market. Please check Pendle’s UI before confirming any transactions.
The listing of stcUSD on Pendle allows users to choose what kind of yield they want to receive based on their risk profile. Users can purchase PT or YT tokens of stcUSD on the Pendle app. Here's the link!
If you have any questions, please refer to ours or Pendle’s discords. Thank you and see you onchain.
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