# Homestead Program

With the Homestead program, we’re entering the next phase of the protocol: sustained production.

### Homestead timeline

* Start date: January 29th, 2026
* End date: July 23rd, 2026

Within the program, there are two tracks: Caps and Cogs

### Caps

<figure><img src="https://315632032-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkRZQBMptsoesj7n1mr8a%2Fuploads%2Fgit-blob-070a061af9ec4bafe18a94259e53df46718dc382%2Fimage.png?alt=media" alt=""><figcaption></figcaption></figure>

USD holders have a choice: yield or Caps. cUSD holders are incentivized to earn Caps. Those who join and remain active from the outset stand to earn the highest number of Caps.

Users can accrue Caps by exploring cUSD integrations across DeFi. The leaderboard for Caps can be found [here](https://cap.app/caps).

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For the first month of the program, users will earn **Double Caps** for all Homestead activities
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#### Holding cUSD

Holding cUSD earns **10x** Caps

#### Pendle

* [YT cUSD / LP cUSD](https://app.pendle.finance/trade/markets/0x307c15f808914df5a5dbe17e5608f84953ffa023/swap?view=yt\&chain=ethereum): Holding YT cUSD or LP cUSD for **20x** Caps
* [YT stcUSD / LP stcUSD](https://app.pendle.finance/trade/markets/0x307c15f808914df5a5dbe17e5608f84953ffa023/swap?view=yt\&chain=ethereum): Holding YT stcUSD or LP stcUSD for **5x** Caps

{% hint style="info" %}
Pendle markets expire Jul 22 2026
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#### Lending Markets

Lending stablecoins to stcUSD and Cap PTs earn **0.5x** Caps per dollar per day

* [Morpho stcUSD / USDC](https://app.morpho.org/ethereum/market/0xeb17955ea422baeddbfb0b8d8c9086c5be7a9cfdefb292119a102e981a30062e/stcusd-usdc)

#### Further Integrations

Stay tuned for additional campaigns! Please follow [Cap’s community handle](https://x.com/capmoney_) on X for updates.

### Cogs

Delegators on Cap will continue to earn COGs following the Frontier program.

<figure><img src="https://315632032-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkRZQBMptsoesj7n1mr8a%2Fuploads%2Fgit-blob-d6a827a48127433c4c6cee441d3127c22a41db8b%2Fimage.png?alt=media" alt=""><figcaption></figcaption></figure>

The formula to calculate COGs is the following:

<p align="center"><em>COGs = Delegation Value * Borrow Boost * Delegation Boost</em></p>

Breaking it down, Delegators earn COGs proportional to the amount delegated.<br>

The Borrow Boost is calculated as:

<p align="center"><em>Borrow Boost = min (18 * LTV + 1, 10)</em></p>

In English, the borrow boost is determined based on the current Loan To Value of the delegated Operator. If the Operator's LTV is currently 20%, the boost will be **4.6x**. The minimum boost is **1x** and is capped at **10x.**

Finally, we are introducing the Delegation Boost. Delegations over certain USD amounts will receive a multiplier boost. Specifically, the boost follows a step function at 3 amounts: $25m, $50m, and $100m. For example, a $75M delegation will receive **1.5x** COGs.

<figure><img src="https://315632032-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkRZQBMptsoesj7n1mr8a%2Fuploads%2Fgit-blob-71996bf0f0c27c95371af5ad8224c217106a7c3e%2Fimage.png?alt=media" alt=""><figcaption></figcaption></figure>

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A minimum delegation of $2M is required to earn Cogs
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