Renzo: The rising star in the re-staking track

Renzo is an Ethereum re-staking protocol based on Eigenlayer. It simplifies the complexity of re-staking on Eigenlayer, providing users with a more straightforward and convenient way to participate in the process. Users can deposit ETH or liquid staking tokens (LST) into Renzo to receive ezETH in return. ezETH is a liquid staking token (LRT) that can be used in DeFi applications.

In simple terms, users can stake ETH or LST tokens to Renzo, which will place these assets into Eigenlayer. Since there are multiple active validation services (AVS) on Eigenlayer, the operation is relatively complex. Renzo will choose the AVS on behalf of the user to delegate, thereby lowering the participation threshold for users. Users can earn ETH staking rewards, Eigenlayer points rewards, and Renzo points rewards.

ezETH

ezETH is Renzo's liquidity re-staking token, representing the positions that users have re-staked in Renzo. Users can deposit native ETH or LST to receive an equivalent amount of ezETH.

ezETH is similar to cTokens and is a reward token. It is expected to receive rewards in the form of ETH, USDC, and AVS tokens, which means that the value of ezETH will increase relative to the underlying LSTs.

Unstaking requires a minimum of 7 days, mainly due to the unstaking requirements of EigenLayer. The specific time may vary for each AVS. Currently, direct withdrawal of ezETH is not supported; users can provide liquidity on Balancer or sell ezETH.

Renzo allocates 100% of the EigenLayer rewards to users. The protocol fees will be distributed between the protocol reserve ( treasury ) and Renzo node operators.

Renzo Points

Users can earn Renzo points in the following ways:

1. Minting ezETH: Each ezETH can earn 1 Renzo ezPoint per hour. Early participants can also receive additional rewards.

2. Referral System: Invite others to deposit ETH to earn an additional 10% in referral user points.

The earnings that Renzo users can obtain include: ETH stake earnings, EigenLayer re-staking points, and Renzo points.

Project Progress

• December 18, 2023, Renzo Beta mainnet launch
• On January 16, 2024, announced the acquisition of $3.2 million in seed round financing.
• On February 22, 2024, Binance Labs announced an investment in Renzo.
• On April 23, 2024, Renzo announced that the $REZ token will be launched on a certain exchange's launchpool.
• On April 25, 2024, Renzo updated the tokenomics.

Related Data

According to data from the data platform, the total TVL of the liquidity re-staking track is $1.007 billion, and Renzo's TVL is $3.231 billion, ranking second. Renzo is currently available for staking on 7 chains, with the highest TVL on the Ethereum chain, which is $2.424 billion.

Financing Situation

The total financing amount announced by Renzo is $3.2 million.

In January 2024, Renzo completed its seed round financing with a valuation of $25 million, led by Maven11 Capital, with participation from Figment Capital, SevenX Ventures, IOSG Ventures, and others.

In February 2024, an investment institution announced its investment in Renzo, but the specific amount was not disclosed. The investment structure is the same as the seed round, with a ratio of equity to token warrants of 1:1.

Project Team

Core Contributors:

• Kratik Lodha
• Lucas Kozinski

Airdrop Details

The first season airdrop ended on April 26. User eligibility depends on the ezPoints balance in the wallet at the time of the snapshot. REZ tokens can be claimed starting from April 30, 2024. Large wallets holding over 500,000 ezPoints will have 50% unlocked at TGE, with the remaining 50% unlocking linearly over 3 months. The minimum eligibility is 360 ezPoints per wallet. Over 99% of eligible wallets have been fully unlocked at TGE.

The rewards for the second season will begin on April 26, 2024. 700 million REZ tokens ( account for 7% of the total supply ) and will be distributed based on the number of ezPoints accumulated by users. Users can go to claim.renzoprotocol.com to claim REZ tokens before April 30.

Token Economics

$REZ is the native utility and governance token of the Renzo protocol. The total supply is 10 billion, with an initial circulation of 1.15 billion (, accounting for approximately 11.50% of the total supply ).

Allocation Plan:

• Certain trading platform launchpool: 2.50%
• Community Airdrop: 12.00%
• Team: 20.00%
• Foundation: 12.44%
• Investors and Advisors: 31.56%
• DAO Treasury: 20.00%
• Liquidity Pool: 1.50%

Launch Status

A trading platform will launch $REZ spot trading on April 30, 2024, at 12:00 UTC (.

Currently, $REZ is mining on the platform's launchpool, with a total allocation of 2.5% of the total token supply, and the mining period is 6 days. 85% of $REZ is allocated in the BNB pool, and 15% is allocated in the FDUSD pool. The total amount participating in the BNB pool is 17,894,204.7008 BNB, with 187,047 participants.

The current off-market price is approximately $0.3, but the buy depth is insufficient. You can refer to similar projects like Ethfi, which had a listing price of around $3, corresponding to a market capitalization of about $350 million. Considering the market situation, the price of Renzo may be slightly lower than $0.3.

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Summary

After ETH transitioned to POS, staking and re-staking have become mainstream tracks. Renzo has developed products based on Eigenlayer and is in a hot track. The project has achieved over $3 billion in TVL, but the disclosed financing is only $3.2 million. ezETH has collaborated with multiple DeFi projects, but there is also a certain risk of decoupling. Renzo faces project risks related to Eigenlayer and reduction risks associated with AVS. The $REZ token is primarily used for governance and staking, and it may generate income in the future through validating AVS.

Investors need to weigh potential returns against risks and decide whether to participate based on their own risk preferences.

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