markdownFor Institutions

Why LST-backed payment rails are inevitable once balance sheets meet on-chain yield.

Institutions do not reject DeFi because of yield. They reject it because of unbounded operational risk. Fragmented collateral types, volatile liquidation mechanics, and opaque execution paths make most DeFi systems impossible to model within standard treasury, risk, and compliance frameworks.

GigaETH is designed to be legible to institutional balance sheets.


Balance-Sheet Clarity

Institutions reason about assets in terms of exposure, liquidity, and cash flow, not protocol-specific wrappers. GigaETH collapses heterogeneous LST positions into a single normalized ETH exposure with explicit risk weights.

NormalizedExposure =
  Σ (LST_i_balance * ETH_exchange_rate_i * RiskWeight_i)

This allows institutions to treat their position as a single productive ETH line item rather than a basket of derivative tokens with bespoke accounting treatment.


Predictable Borrowing and Spend Limits

Institutional risk teams require deterministic constraints. GigaETH enforces these mechanically.

BorrowLimit = NormalizedExposure * MaxLTV
OutstandingDebt ≤ BorrowLimit

Payment authorization is gated by the same constraint:

If (OutstandingDebt + SpendAmount) > BorrowLimit
    RejectPayment

There is no scenario where a payment can push a position into unsafe territory post hoc. This is fundamentally different from liquidation-based safety models.


Liquidation Without Fire Sales

Institutions cannot tolerate forced asset dumping. GigaETH’s liquidation path is staged and non-extractive.

Each stage preserves as much yield and principal as possible while protecting bidder liquidity.


Compliance and Auditability

GigaETH is non-custodial, but auditable.

All borrowing, repayment, and settlement events are on-chain and verifiable. There are no discretionary credit decisions, no opaque rehypothecation, and no off-ledger liabilities.

Session-based spending introduces additional control:

These parameters mirror traditional corporate card controls, making integration with existing governance processes straightforward.


Why Institutions Care

Institutions want three things from crypto infrastructure:

  1. Yield that is real

  2. Liquidity that is predictable

  3. Risk that is bounded

GigaETH delivers all three by turning LST-backed borrowing into infrastructure, not speculation.

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