Operator Yield

Operator-generated yield

Operators of various skillsets will interact with CAP to generate yield for stablecoin holders. These agents will include market makers, MEV actors, DeFi protocols, RWA companies, and other entities capable of producing yield with reasonable risk profiles. By onboarding a diverse agent group, CAP will be able to produce yield in various market conditions and at large scales.

Why use Operators?

• Scalability: A network of operators can operate across a wide range of markets and chains simultaneously, whereas a single team is limited by its resources and capacity. This setup can enhance yield by tapping into opportunities that might otherwise be too small or niche for a centralized team to handle.

• Competition: Operators who compete or have incentives tied to performance can drive higher yields.

• Diverse strategies: A diverse group of operators can implement varied strategies, which will allow CAP to perform well in any market condition.

Benefits of being an operator

Operators earn the difference between the yield generated by their strategies, minus the cost incurred from provisioning tokens from CAP (restaking fees, CAP fees, and yield for stablecoin holders). This incentive comes with no capital requirements for agents, significantly impacting their return profiles.

Additional benefits for operators depends on their context. DeFi protocols and RWA companies, for example, run business models that benefit from additional capital. This incentivizes them to interact with CAP to improve their token flows, to the extent that they can compete with other agents.

Market makers, MEV actors, and individuals can provisioning additional liquidity for their strategies without capital commitments. Unlike other solutions, such as flashloans, CAP loans can last several days. This broadens the types of strategies that these operators can execute.

Ultimately, there is no shortage of actors in the space that can generate yield at various scales. CAP will look to onboard a diverse set of operators to ensure scalability.