Etherfi, FalconX, and M11 Credit have established what they claim represents the first institutional restaking agreement in DeFi history, integrating liquid restaking tokens with institutional private credit markets. Under this arrangement, Etherfi delegates weETH to the Cap Money protocol—a covered credit platform built on Symbiotic—to underwrite credit for M11 Credit.

This structure allows M11 Credit to borrow funds from Cap’s private credit platform through a Special Purpose Vehicle (SPV) established under FalconX’s Structured Credit Facility.

This development creates a direct bridge between restaking assets and real-world private credit. For weETH holders, the integration offers a fixed interest return generated from institutional lending activities, distinguishing it from typical inflation-based staking rewards. However, the mechanism introduces specific counterparty risks: because the weETH serves as committed collateral to underwrite the loans, these assets are subject to slashing events if borrowers default and obligations cannot be covered. This partnership signals a maturing market where restaked assets are increasingly utilized as functional financial instruments beyond simple consensus security.
Learn More:
https://etherfi.gitbook.io/etherfi/staking/weeths-super-symbiotic