The Renzo Protocol is a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer, providing access to the EigenLayer ecosystem. It ensures the security of Actively Validated Services (AVSs) and offers a yield higher than ETH staking. Lucas Kozinski, James Poole, and Kratik Lodha are the founders of Renzo. ^[1]

Overview

Launched in December 2023, Renzo, a Liquid Restaking Token (LRT) and Strategy Manager operates within the EigenLayer ecosystem. It simplifies user interactions and fosters seamless collaboration with EigenLayer node operators. It aligns with EigenLayer's mission of enabling permissionless innovation on Ethereum and establishing trust within the ecosystem. Renzo is the go-to platform for Ethereum restaking, offering a higher yield than ETH staking and promoting the adoption of EigenLayer. It achieves this by minting an equivalent amount of ezETH for every LST or ETH deposited. It uses smart contracts and operator nodes to secure an optimal risk/reward restaking strategy. ^[1]

REZ

REZ serves as the native governance token within the protocol, granting holders the ability to participate in voting on governance proposals encompassing diverse matters. These proposals may cover operator whitelisting, Actively Validated Services whitelisting, frameworks for overall risk management, community and treasury grants, and specifications regarding concentration amounts, collateral assets, and deposits. ^[1][2]

Tokenomics

The maximum supply of REZ tokens is limited to 10,000,000,000 and has the following allocation: ^[1][2]

• Fundraising: 31.56%
  • Intended for the project’s early investors.
• Community: 32%
  • 7% allocated for Season 1 airdrop rewards based on earned ezPoints.
  • Allocated for various community campaigns.
  • 5% designated for the second season of incentives.
• Core Contributors: 20%
  • Distribution to Renzo Labs’ team and advisors.
• Foundation: 12.44%
• Binance Launchpool: 2.5%
• Liquidity: 1.5%

ezETH

ezETH functions as the Liquid Restaking Token (LRT) within the Renzo Protocol, symbolizing the user's restaked position. Participants can stake native ETH or liquid staking tokens (LSTs), like wBETH and stETH, and in return, acquire ezETH. Notably, ezETH is a reward-bearing token, implying that its value has the potential to surpass that of the underlying tokens due to its yield enhancement within Actively Validated Services (AVSs). ^[2]

ezPoints

Renzo's ezPoints system aims to incentivize active participation and contribution to the protocol's success. Participants are rewarded with points based on their involvement, with the quantity varying according to the duration and nature of their engagement. Holding ezETH is one way to earn ezPoints, with holders receiving 1 Renzo ezPoint per hour for each ezETH held. Early participants and those with larger ezETH holdings receive additional points. ^[1]

Partnerships

Connext Network

Renzo Protocol has partnered with Connext Network to introduce cross-chain Native Restaking to Layer 2 networks. This collaboration enables ETH/wETH holders to restake on prominent Layer 2 chains supported by Renzo, offering increased liquidity and accessibility while simplifying the complexities of conventional restaking processes. Additionally, Renzo plans to extend support for LST restaking on Layer 2 networks. Integrating Renzo with Connext and Chainlink's Cross-Chain Interoperability Protocol (CCIP) ensures a smooth and seamless cross-chain Native Restaking experience for users. ^[1]

Pendle

On January 31st, 2024, Renzo unveiled its integration with DeFi yield protocol Pendle Finance. This integration operated through a single contract, the EIP5115 SY token, representing ezETH at a 1:1 ratio. The SY tokens could be tokenized into principal tokens (PT) and yield tokens (YT). ^[3]

Investors

• Binance Labs
• Maven 11 Capital
• OKX Ventures
• IOSG Ventures
• Bitscale Capital
• SevenX Ventures
• Robot Ventures
• Figment Capital
• Mantle