Derived from AiCoin, EigenLayer has launched a new AVS called Cap, designed to facilitate lending from retail and institutional investors to large market makers like Flow Traders. The protocol introduces a guarantee mechanism where entities like YieldNest provide insurance using ETH collateral, allowing lenders to mitigate risks. Borrowers pay higher interest rates, with the difference serving as profit for the guarantors. The system includes safeguards such as LTV monitoring, address whitelisting, and automatic liquidation to prevent defaults.
EigenLayer Cap Aims to Enable Retail Investors to Lend to Institutional Market Makers
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