DeFi Dave, Head of Growth at Cap Money, joins us to talk about how Cap found product-market fit for restaking. Dave breaks down Cap's three-sided marketplace connecting stablecoin users, market makers (operators), and risk takers. Operators access undercollateralized loans backed by restaked ETH/BTC, paying 8-11% to beat their strategies. If they fail, risk takers eat the loss—users stay protected. We also dive into lore building, why most restaking hype was overblown, and how Cap brings Wall Street on-chain.

Subscribe to the newsletter! https://newsletter.blockspacemedia.com

Notes:
- Cap has $15-20M currently lent to operators
- Operators pay 2-4% premium fees to risk takers
- Total borrowing costs range from 8-11% hurdle rate
- Risk takers earn 6-7% all-in real yield
- Uses EigenLayer and Symbiotic for restaking layer

Timestamps:
00:00 Start
01:12 Who is DeFi Dave?
02:19 What is Cap?
07:31 Restaking & yield
09:22 Yield range
11:48 Institutional flows
12:50 Cap vs Wildcat
14:07 Legal recourse?
15:42 Staked CUSD vs CUSD
16:25 Current operator marketcap
17:08 Loan terms
19:42 CUSD vs Others
21:48 Ready for institutional capital?
23:59 Other staking use cases?
27:26 Stablecoin regulation
30:23 Collateralization
32:09 Lore building
35:38 The power of belief
41:29 What does Dave do all day?
43:56 Competitive advantage
47:57 What are Caps?
49:08 Gwarts opinion on Cap

The Gwart Show is sponsored by Ellipsis Labs. Backed by Paradigm, Electric Capital and Haun Ventures. The founders, Eugene and Jerry, have experienced Citadel Jane Street in the Solana Core team since launching their order book DEX, Phoenix. They’ve done over $80 billion in trading volume by making onchain order books competitive with centralized exchanges.

Ellipsis is hiring for New York-based engineers. Work with a small focus team who are results driven, collaborative, and use a modern stack. If you’re an engineer who wants to work on infrastructure that’s already proven itself in the market, go to ellipsislabs.xyz.

Learn more about your ad choices. Visit megaphone.fm/adchoices