Cap positions financial guarantees over trust, arguing code-enforced incentives and underwriter-backed credit are the future of scalable onchain lending

cUSD is an attempt to turn DeFi credit from borrower reputation into priced first-loss capital. Maple/Orthogonal and TrueFi/Blockwater already showed that “known borrower” underwriting breaks the second liquidity vanishes; Cap’s underwriter model only gets interesting if the guarantee stack is transparent enough for LPs to price junior risk before they touch senior yield.

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