CAP Labs, V4, V3.1, and more

Details on last week’s announcements and what’s next

4 min readJan 16, 2023

It’s been a busy couple of weeks at CAP Labs and we wanted to take a moment to catch you up on all the exciting developments. There’s a lot to cover, so let’s dive in!

CAP Labs

First up, we’re thrilled to announce that CAP Labs has been formed as an official entity to drive CAP development of current and future products and marketing. This includes maintaining open source interfaces to interact with the protocol, producing content related to CAP and crypto, and hiring talent for both growth and product development.

The CAP Labs structure will allow us to drive the CAP vision further by offering even more innovative products that people love — with the quality, security, and ease of use that CAP has become known for. We can’t wait for you to see what we have in store.


We recently launched the highly anticipated CAP V4 in private beta, and it has received rave reviews from early users.

Early version V4 UI — Private beta

CAP V4 is the most advanced derivatives DEX ever.

We’ve been working on V4 for the better half of a year now, and it’s been a labor of love. CAP has been pioneering innovations in DeFi since 2020 and we’re once again proud to be at the forefront of the industry.

We think you’re gonna love V4. It lets you:

  • Trade 100+ crypto and legacy markets directly from your wallet.
  • Provide liquidity to back trader P/L and make real yield.
  • Stake CAP (ticker: CAP) to receive a share of protocol revenue.

Here’s a recap of some of its features:

  • World-Class Platform. An intuitive interface with real-time prices, charting, and more.
  • Multi-Collateral. Use ETH or USDC as margin when placing trades. Pools are siloed per collateral type.
  • Advanced Order Types. V4 supports market, limit, stop, take-profit, stop-loss, OCO, reduce-only, and more.
  • Dynamic Funding. Pay or receive funding hourly based on real-time open interest imbalance.
  • Adjustable Leverage. V4 runs an isolated margin system, allowing you to fine tune leverage on every order you submit, as well as add or remove margin from open positions.
  • Superior Execution. Made possible by low fees and zero slippage.

Interested? Join our Discord to see how you can get an invite for V4. We’re looking for early adopters from across the spectrum.

V3.1 — A Cross Margin DEX

Last week, CAP Labs launched V3.1, the world’s first cross margin DEX.

V3.1 is entirely decentralized, open source, and accessible to anyone. It runs on Arbitrum and uses Chainlink feeds directly for pricing, and keepers (which anyone can run) for order execution.

A simple, straightforward UI


  • Cross Margin. Margin is shared between positions, minimizing liquidations and collateral management.
  • Risk Management. Set limit, stop, take-profit, and stop-loss.
  • Dynamic Funding. Pay or receive funding based on open interest.
  • Trustless. Interact directly on-chain with smart contracts without intermediaries.

How It Works

You buy to profit from rising prices and sell to profit from falling prices. Your profits are paid from the pool and your losses are paid to the pool.

Collected trading fees are split three ways: 45% for the pool, 45% for the treasury, and 10% for the keeper that executes the order.

Liquidation occurs when your account’s margin level, which measures how much margin you have left vs your unrealized loss, reaches 20%.


We want to mention the hard work and dedication of both beskay (Solidity contributor) and uncoolzero (Svelte UI contributor) who have played a central role in developing and shipping V3.1.

A quick note! We’re looking for incredibly talented developers (Solidity / Svelte) to contribute to V4 and future CAP products. We’re also hiring a Community Lead to direct all marketing efforts. More details about that role here.


While V4 will take center stage after its public launch, V3.1 will remain accessible for people who want a simple, cross-margin DEX experience.

V3, currently CAP’s main product utilizing on-demand dark oracles for order execution, will also remain accessible for the foreseeable future.

The CAP Community

We want to take a quick moment to mention the incredible and truly unique CAP community. We couldn’t be more grateful to our community members, many of whom have been with us on this exciting journey from the very start. They are the backbone of CAP and we’re so lucky to have such a talented and dedicated group of people supporting us!

If you want to know what we’re talking about, join our Discord.

What’s Next?

We’re focused on getting V4 released in public beta, which we expect to do relatively soon. After that, we want to get it audited and thoroughly tested prior to releasing it out of beta for the general public to use.

Big things are coming. We believe V4 and future CAP products are going to have a substantial impact on the industry. We’re pretty excited.

To CAP tokenholders and stakeholders: thanks for your continued loyalty. We know it’s been a rollercoaster ride and we couldn’t have done it without you. Hang tight, the future is almost here.

Keep an eye out for even more updates and developments in the coming weeks. And as always: thanks for your support!

— CAP Labs Team