🧢 Cap Finance

Protocol Overview:

Cap Finance is an advanced derivatives protocol that offers users access to over 30 different markets, enabling them to long and short the market. Liquidity providers can deposit funds to become the counterparty to those trades, providing liquidity to the platform.

Where does the yield come from?

When you deposit funds into our USDC or ETH vaults, we take those funds and provide liquidity to act as the counterparty to longs and shorts on the platform. Whenever traders get liquidated, a portion of the protocol gains are deposited into the pools, which generates yield for depositors. We claim these rewards and put them back into the pool to increase your share of the pool and APY.

What are the risks involved?

While the pools have historically provided excellent returns for liquidity providers, it should be noted that in the short term, the value of your funds can decrease when deposited into this vault. As a liquidity provider, you are providing liquidity as a counterparty to trades on Cap Finance. If traders make a net gain on the platform, these gains are paid out from the liquidity provider pools.

Fees:

At RLD, we take a 5% performance fee on every compound, ensuring that our platform remains sustainable and profitable.