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Category: NFT News

Institutional Investors Are Farming Liquid Restaking Tokens For Yield

MEV Capital says liquid staking offers market-neutral ETH yields.

Liquid restaking is not just for degens. Institutional investors are also getting in on the trade.

Gytis Trilikauskis, COO of MEV Capital, said his fund initially focused on liquidity provision, arbitrage, and MEV-based strategies, but has recently pivoted to capitalize on the booming liquid restaking token (LRT) sector.

Trilikauskis noted that MEV Capital wasn’t interested in restaking until Liquid Restaking Tokens (LRTs) gave rise to new opportunities for yield generation through DeFi composability, noting that his clients expect “at least a double-digit yield.”

Professional investors are seeking to take advantage of the yield that’s generated from liquid restaking, plus the potential airdrops many of these applications are expected to do, said Trilikauskis. It’s a sign institutions are weighing that the yield from one of the fastest growing sectors in crypto is worth the potential risk that comes from taking multiple layers of protocol and smart contracts risks.