Flow Traders, a prominent liquidity provider and ETF market maker, has partnered with Cap and EigenLayer to enhance institutional access to decentralized finance (DeFi). As an operator on Cap, a private credit market built on EigenLayer's mainnet, Flow Traders will leverage EigenLayer’s slashing, reallocation, and staking features to channel institutional capital into the protocol. EigenLayer's slashing mechanism penalizes operators who fail to meet loan terms, reallocating penalties to provide protocol-level insurance for institutional DeFi. EigenLayer CEO Sreeram Kannan highlighted this collaboration as a blueprint for bringing institutional finance on-chain, with Cap utilizing self-executing financial guarantees enforced by code. Kannan also noted the growing interest in EigenCloud, EigenLayer’s verifiable cloud platform, which combines Ethereum's security with enhanced programmability, appealing to institutional DeFi participants.