Why This Matters

Large allocators like banks, pension funds, asset managers, or custody platforms control billions in idle ERC-20s but cannot touch today’s staking and restaking products. They face five non-negotiables:

1. KYC / AML on every depositor.

2. Whitelisted counterparties (known node operators, known AVSs).

3. Audit-grade reporting for finance, risk, and regulators.

4. Real-time proof that risk is manageable through slashing visibility.

5. Reward processing that works with institutional custody.

Flow’s whitelisted vault mode delivers all five without the institution writing a single line of Solidity.

The Challenge

Institutional allocators must vet every wallet, can’t mix funds with unknown addresses, and need reward processing that works for them.

Node operators prefer predictable, high-TVL delegations, but corporate clients demand additional features that may be difficult to implement.

AVSs want allocated “sticky” capital and diversified collateral, but not the brand damage and risk of accepting funds from sanctioned addresses.

How Flow Vaults Work

1) Vault Creation

The curator works with Renzo and Concrete to spin up a Flow vault and flags it as needing a whitelist.

2) Access Control Layer

The vault integrates an onchain whitelist for approved depositors. Non-whitelisted addresses are not able to deposit.

3) Operator Selection

Curators designate an exclusive node-operator set. This includes the ability for an institution to run the vault on its preferred operator infrastructure, ensuring control over performance metrics and geographic dispersal for decentralization.

4) Restake and Delegate

Approved deposits are delegated to the chosen operators, and restaked on EigenLayer.

5) Reward Management

Vault rewards are claimed, swapped to the deposit asset if necessary, and redeposited, accruing directly to the price of the liquid receipt token of the vault. The receipt token can be made non-transferable depending on the curator’s needs.

Benefits at a Glance

• Regulatory-grade KYC: deposits, transfers, and redemptions restricted to approved addresses.

• Operator trust-layer: allocators pick nodes that they have a relationship with for known physical control and insurance cover.

• One-click UX: compliance and restaking complexity is abstracted away; deposits and withdrawals can be managed through a simple UI.

• (Optional) Composability: the receipt token can still be rehypothecated inside permissioned DeFi venues to unlock secondary yield.

Looking Ahead

Flow’s whitelisted mode turns EigenLayer security into an approved asset class for regulated capital. If your organization needs KYC-enforced exposure to restaking yields, Renzo and Concrete can get you operational in days, not quarters. Reach out to us directly to learn more.

Restake with Renzo and Compound with Concrete.