What is TCAP?

TCAP is an ERC20 token that tokenizes the Total market capitalization of the entire cryptocurrency market. TCAP can be thought of as a market index that uses an oracle to track the price of the total cryptocurrency market. The Total cryptocurrency market cap currently values in trillions of dollars. To make it a nominal asset, the value is divided by a divisor. For example, if the total crypto market cap resides at 350 billion dollars, then we add a divisor to that number, just like the S&P 500 or any major financial index would. The price calculation for TCAP is as follows:

cc = $350,000,000,000

dd = 10,000,000,000

rr = cd\frac{c}{d} = $35.00

Where cc is the total cryptocurrency market cap, dd is the divisor and rr is the TCAP token price.

TCAPs are then minted upon being collateralized by an underlying asset, such as ETH or DAI. What the user receives in return is a newly minted asset nominalized token that moves in real time to the price of the underlying total market cap metric is tracking. Each TCAP is algorithmically collateralized by a corresponding amount of ETH or DAI needed to appropriately back each token, thus creating price exposure to the entire cryptocurrency sector with the single push of a button.

TCAP is currently deployed on Ethereum mainnet.

Types of Vaults

TCAP has two kinds of vaults, low-risk vaults and high-risk vaults. The low-risk vaults are called Regular vaults, and the high-risk vaults are called hard-mode vaults. The regular vaults have a collateralization ratio between 150-200%, and a liquidation penalty is 10 %. The hard-mode vaults have a collateralization ratio of 125% and a liquidation ratio of 19%. The hard-modes vaults allow minting with more capital efficiency because of low vault ratios, but they penalize very heavily during liquidations

Supported Collaterals

The regular vaults support ETH, DAI, WBTC, AAVE and LINK as collaterals. The hard-mode vaults support ETH and DAI as collaterals.

Minimum Vault Ratio

All hard-mode vaults have a minimum vault ratio requirement of 125%. All regular vaults have a minimum vault ratio requirement of 200%, except ETH, which has a requirement of 150%.

Liquidation Penalty

TCAP regular vaults have a liquidation penalty of 10 % and the hard-mode vaults have a liquidation penalty of 19%.


TCAP regular vaults have a burn fee of 1 % and the hard-mode vaults 0f 0.05%. The fee is charged as a percentage of the amount minted in ETH. The DAO owns the revenue generated through these fees.