Wu reports that Cap founder and CEO Benjamin posted an apology over the Stabledrop controversy, saying the team made an early commitment for a $11 million allocation in February this year before funding was fully in place, but due to market changes and ICO financing coming in below expectations, the final distributable amount would be only $4.2 million. To prevent YT holders from suffering principal losses under the original plan, the team changed to distribute funds based on a “principal protected but not profitable” principle, and said all wallets follow the same rules. Benjamin also said that Cap’s recent TVL decline is due to a sharp spike in the USDM borrowing rate for Aave on MegaETH, which is unrelated to Stabledrop, and that all related redemptions have been handled normally.