The pledgedcoin defined in the Capricorn Protocol is an asset-backed cryptocurrency that is soft-pegged to a fiat currency. CUSD is the first pledgedcoin in the Capricorn system. Its function is to soft anchor the US dollar. Capricorn uses the collateral in the protocol and the mortgage rate adjusted by the algorithm to help CUSD be linked to the target price of 1 USD. In fact, CUSD may be priced at 1 USD with slight fluctuation.

Capricorn introduces cryptocurrency assets and liquidity to become the value support of the economic system through the original Reserve Asset Adapt (RAA), which has a double positive meaning. Diversified value support brings better stability and decentralization, so as to gradually achieve the ultimate form of algorithmic pledgedcoins. Capricorn' central bank creates value for cryptocurrency liquidity and assets, providing liquidity-based services, making Capricorn the pledgedcoin infrastructure of the industry.

An algorithm that combines stability, scalability, and capital efficiency will bring about a positive spiral of continuous growth of the value controlled by the protocol, which is extremely important for the algorithmic pledgedcoins.