- Cap Labs slashed its “stabledrop” from $12 million to $4.2 million, redirecting funds to Pendle yield token holders.
- The decision triggered $23 million in withdrawals and accusations of insider trading linked to founder Benjamin Peillard’s past project.
- Peillard apologized but failed to dispel concerns after on-chain evidence connected a key wallet to QiDAO’s working capital account.
Cap Labs, issuer of the cUSD stablecoin, faced a fierce backlash after announcing a controversial revision to its long-anticipated “stabledrop” program on Friday. The firm cut the promised $12 million airdrop to $4.2 million, redirecting rewards to compensate holders of Pendle yield tokens instead of early cUSD users and liquidity providers.
The move was met with harsh criticism, and on-chain data showed $23 million in withdrawals from the protocol. Some users linked a wallet that had accumulated Pendle YTs to Peillard’s previous project, QiDAO, via its “Working capital account 2.”
Peillard apologized on Monday, calling the $12 million promise a “mistake” based on an unconfirmed valuation. He reiterated that “nobody would take a loss, but at the same time, nobody would make a profit.”
Many remain unconvinced after discovering the same wallet had minted the ENS handle megaben.eth before a related address minted caplabs.eth. Another user questioned the timing of its YT accumulation, which would have made “substantial profits” under the original criteria before the change was announced.
cUSD’s market cap peaked above $400 million in late January and currently sits at around $62 million.
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