Citing PANews, EigenLayer's Cap protocol allows retail and institutional investors to lend funds to regulated market makers like Flow Traders on Ethereum, with risk mitigation provided by guarantors such as YieldNest. The system uses over-collateralization and smart contracts to ensure repayment, with guarantors earning fees from the interest spread. Flow Traders, a European-listed market maker, can now access on-chain liquidity, while lenders benefit from yield opportunities with insurance.
EigenLayer Cap Enables Retail Investors to Lend to Institutional Market Makers with Security
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