Stablecoin credit protocol @CapApp has gone live on @LayerZero_Core's OVault, enabling users to deposit cUSD and stake into yield-bearing stcUSD from any supported chain without manually brid
Stablecoin credit protocol @CapApp has gone live on @LayerZero_Core's OVault, enabling users to deposit cUSD and stake into yield-bearing stcUSD from any supported chain without manually bridging assets. The integration covers Ethereum, Tempo, MegaETH, and Katana.
LayerZero's OVault allows developers to extend vaults by enabling one-click deposits and redemptions from any chain, with share tokens that are omnichain and fully composable across the crypto ecosystem. In practice, that means a user on any supported network can interact with Cap's vault directly. Users interact with the vault from any chain with no manual bridging, no switching networks, and no extra steps.
OVault operates on a hub-and-spoke model where the core vault strategy remains on a designated hub chain, while Share Omnichain Fungible Tokens enable seamless interaction from any connected spoke chain. Users deposit from any blockchain, which forwards the request via LayerZero to a composer on the hub chain. The composer deposits into the underlying ERC-4626 vault, mints Share OFTs, and sends them back to the user's original chain. For Cap users, the result is a unified staking position regardless of which network they start from.
Cap is a stablecoin protocol that provides credible financial guarantees through two products: the dollar-denominated cUSD and the yield-bearing stcUSD.Those who stake cUSD receive stcUSD, which earns auto-compounding yield sourced from operators executing investment strategies.The protocol outsources yield generation to a network of institutional operators who borrow from Cap's Credit Engine. These operators, which include banks, high-frequency trading firms, and market makers, generate yield through private credit.
Operators borrow reserve capital only if backed by delegations from restakers, who underwrite their risk. Restakers allocate locked assets to specific operators through shared security markets and are compensated with fees. If a borrowing position becomes undercollateralized, liquidation events are triggered, with liquidated funds redistributed back to stablecoin holders so that cUSD remains backed 1:1 at all times.
Since its launch in August 2025, the total value locked in the Cap protocol has grown to $500 million as of January 2026. The OVault integration is designed to broaden that base further by making stcUSD yield accessible to users across a wider set of networks with minimal friction.
Sources:LayerZero: Introducing OVaultLayerZero OVault DocumentationOAK Research: Cap Money Protocol Overview
