bit.fan
Cap
3 months agoNews Editor

Cap founder apologizes over Stabledrop cut, says airdrop pool fell from 11 million to 4.2 million

Cap founder Benjamin apologized after controversy over the reduced Stabledrop allocation and laid out the project’s explanation in detail. He said the team had committed too early to an 11 million airdrop before funding was fully secured. After market conditions changed, fundraising came in below expectations, shrinking the actual airdrop pool to 4.2 million. Benjamin said the team then replaced its planned linear distribution with a temporary restructuring model designed to preserve principal but offer no profit for early YT holders, with the goal of ensuring that no participant takes a loss. He added that the rule applies equally to all wallets. Addressing community criticism around a whale wallet suspected of internal score farming, Benjamin said the address belongs to a former colleague rather than the team itself and that no treasury funds were used. He also said the Cap protocol remains healthy and argued that the TVL drop seen over the weekend was mainly driven by a spike in USDM borrowing rates on Aave on MegaETH, which pushed arbitrage traders to exit, rather than by the airdrop dispute. According to him, all redemptions were processed smoothly.

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Cap founder apologizes over Stabledrop cut, says airdrop pool fell from 11 million to 4.2 million
Cap
3 months agoNews Editor

Cap cuts Stabledrop payout to $4.2 million from about $12 million as backlash grows

Cap, a Franklin Templeton-backed stablecoin protocol, has reduced its promised Stabledrop user reward to $4.2 million from roughly $12 million, prompting a public apology from founder Benjamin Sarquis Peillard. The project said the payout will be funded entirely by proceeds from its June token sale, which raised $4.2 million after Cap sold 5% of token supply at a $75 million floor, far below the earlier assumption of a $250 million valuation and a 10% sale. The revised distribution now applies only to certain Frontier users who bought Pendle yield tokens without holding the matching principal tokens, while cUSD holders and Pendle liquidity providers are excluded. Sarquis Peillard also rejected accusations that he routed rewards to a wallet tied to his former employer, saying the address belongs to a former colleague and received no QiDao treasury funding beyond gas fees. CAP has fallen about 20% over the past week, while Cap’s total value locked dropped to about $230 million from a July 8 peak of $262 million, according to DefiLlama.

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Cap cuts Stabledrop payout to $4.2 million from about $12 million as backlash grows
Cap Labs
3 months agoNews Editor

Cap Labs unveils revised Stabledrop plan with $4.2 million in cUSD compensation for loss-making Frontier users

Cap Labs has released a new Stabledrop plan tied to its Frontier Program, setting aside $4.2 million in stablecoin compensation for eligible users. Under the updated terms, the payout will go to Frontier participants who held capped tokens and are currently at a loss, with funds sourced entirely from token sale proceeds. The compensation will be paid in cUSD and is intended to fully cover those losses. The revised Stabledrop will become redeemable on July 13, 2026, and users will have a three-month window to claim. Eligibility is limited: only Frontier participants whose losses came from buying Pendle YT can receive the compensation. Users who simply hold cUSD or provide liquidity to Pendle LP are excluded from the stablecoin distribution. The update narrows the scope of the program while clarifying both the source of funds and the redemption timeline.

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Cap Labs unveils revised Stabledrop plan with $4.2 million in cUSD compensation for loss-making Frontier users