Operator Onboarding

The following outlines the process for onboarding as an operator to borrow from Cap.

1. Requirements

  • Agent Address: A valid Ethereum address (EOA or multisig) to serve as the Agent

  • Delegator: Delegator to receive delegations from. The list of current delegators can be found herearrow-up-right.

  • Agent Parameters:

    • Delegation Rate: Fixed delegation premium rate on the amount borrowed

    • LTV: Loan-to-Value ratio for initial maximum borrow capacity

  • Protocol Whitelisting: Contact the Cap team to request agent registration

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An Operator may only use one Ethereum address per Delegator and collateral pair. They must generate a new address for each new Delegator. Addresses cannot be changed after deployment. For best practices, we recommend using a multisig for the address.

2. Register to a SSN of choice

Currently, Cap supports the following Shared Security Networks.

Operators and Delegators may enter into legal agreements outlining terms of delegation, responsibilities, and compliance.

4. Participate in Loan Activity

Once coverage is active from the respective shared security network, Operators can participate in borrowing activity directly from Cap's application using the Agent's address.

Review the risk parameters prior to loan:

  • LTV (Loan-to-Value): Maximum borrowing capacity (e.g., 50% = 0.5e27)

  • Maximum Borrow Amount: Coverage x LTV

  • Liquidation Threshold: Health factor at which liquidation can occur (e.g., 80% = 0.7e27)

  • LTV Buffer: Minimum gap between LTV and liquidation threshold (10% = 0.05e27)

5. Updating Parameters

Should Operators wish to change loan parameters, please contact the Cap team to do so.

Namely, the restaker rate can be updated via the setRestakerRatearrow-up-right function, and the LTV and LT via the modifyAgentarrow-up-right function.

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