Renzo, a liquid restaking protocol, recently announced that it has successfully raised $17 million in funding from Galaxy Ventures and Brevan Howard Digital Nova Fund. This funding will be used to expand the project’s restaking services, including adding support for ERC-20 tokens.
Renzo is a part of a new wave of restaking protocols that operate on EigenLayer, a platform that allows users to stake their ETH tokens as security on the Ethereum blockchain and repurpose them to secure additional networks known as “actively validated services” (AVSs). By doing so, users can earn higher yields than simply holding onto their ETH.
The protocol describes itself as a “liquid derivative platform built on EigenLayer,” providing an interface to the EigenLayer ecosystem by securing AVSs and offering a higher yield than ETH. For every liquid staking token or ETH deposited on Renzo, the platform mints an equivalent amount of Renzo’s liquid restaking token, ezETH, in return.
One of the latest trends in restaking is the ability for users to stake their ERC-20 tokens as well. EigenLayer has announced that they will start accepting their EIGEN token, an ERC-20 token, to secure their in-house AVS, EigenDA. Competitor Symbiotic has also shared that they will accept Ethena Labs’ $ENA and $USDe, also ERC-20 tokens.
Lucas Kozinski, a founding contributor of Renzo, noted in an interview that restaking is becoming more prevalent not just in the Ethereum ecosystem but also in the Bitcoin ecosystem and other non-EVM chains. EigenLayer was one of the first to pioneer native ETH restaking, and now the trend is expanding to include other assets like $EIGEN.
The recent fundraising announcement follows Renzo’s airdrop of its $REZ token two months ago, in which 9.5% was distributed to the community. Renzo serves as an interface to the EigenLayer ecosystem by securing AVSs, rather than being an AVS itself.
In conclusion, the funding secured by Renzo will enable the platform to further develop its restaking services and support for ERC-20 tokens. With the growing popularity of restaking in various blockchain ecosystems, Renzo’s innovative approach to liquid restaking is poised to make a significant impact in the decentralized finance space.
