Implicit & Explicit Safety

Natural balance between operators and restakers

Implicit Safety

Operators

Operators are tasked with earning yield for the stablecoin. They earn the difference between the benchmark yield and the yield that their strategies realize. As a result, operators will have a tendancy to maximize yield as much as possible.

Restakers

Restakers serve as a balancing force to operators. Restakers want to earn yield in exchange for their delegations. This will attract restakers to delegate to CAP operators , as CAP will be a sustainable source of real yield. One of the objectives of restakers is to not get slashed. This influences them to only delegate to operators/agents that are reputable and that present sound strategies. As a result, restakers will ensure that underlying strategies are not too risky.

Explicit Safety

CAP is the first stablecoin protocol where yield generation risk is fully covered. Leveraging the risk management skills and delegation value of restakers, CAP ensures that all operators participating in yield generation are covered.

Economic security

The dynamics of CAP's economic security are much clearer than what is seen at validation networks. It is always evident how much capital is at risk and how much stake delegation is needed to cover associated risks. By having a clear economic security need, CAP can ensure that operators won't act maliciously and prevent slashing events with proper parameters.

Objective faults

These faults are the conditions that deter unwanted operator activity. They are fully onchain and instantly verifiable, providing restakers and operators with predictable outcomes. Objective faults under CAP are (1) not returning tokens by requirement timestamp, (2) returning less tokens than are expected, (3) delegation values covering operator activity falling below minimum thresholds.

Network security co-mingling

CAP will not share stake delegations with other networks/AVSs. Only the delegated stake that is exclusive to CAP operators will be accounted for when engaging with operators. This will protect CAP from the compounding risks of multiple networks having the power to slash the same value.