Renzo: The Emerging Force in the Re-staking Arena

Renzo is an Ethereum re-staking protocol based on Eigenlayer, designed to simplify the re-staking process on Eigenlayer. It provides users with a more convenient and liquid way to participate in this process. Users can deposit ETH or liquid staking tokens (LST) into Renzo in exchange for ezETH, which is a liquidity re-staking token (LRT) that can be used in DeFi applications.

The main advantage of Renzo is that it lowers the operational threshold for users. It will choose the appropriate active verification service (AVS) for users to delegate, allowing users to earn annualized returns on ETH stake, Eigenlayer points rewards, and Renzo's own points rewards.

ezETH

ezETH is a liquidity re-staking token that represents the user's re-staked position in Renzo. For every 1 LST or ETH deposited, an equal amount of ezETH is minted. This token is similar to cTokens, and its value increases relative to the underlying LST as AVS token rewards are earned.

Rewards are expected to be distributed in the form of ETH, USDC, and AVS tokens. Unstaking requires at least 7 days, primarily due to EigenLayer's requirements, and the specific time may vary depending on AVS. It is worth noting that direct withdrawal of ezETH is currently not supported; users can provide liquidity on Balancer or sell ezETH.

Renzo allocates all EigenLayer rewards to users, while protocol fees are distributed between the protocol reserves and node operators.

Renzo Points System

Users can earn Renzo points through the following methods:

1. Mint and hold ezETH: Each ezETH can earn 1 Renzo ezPoint per hour, with additional rewards for early participants.
2. Recommendation System: Invite others to deposit ETH to earn an additional 10% in referral user points.

Renzo users can earn the following benefits: ETH stake rewards, EigenLayer re-staking points, and Renzo points.

Project Development History

Since Renzo launched its Beta mainnet in December 2023, it has developed rapidly. Major milestones include:

• Secured $3.2 million in seed funding on January 16, 2024
• Received investment from Binance Labs on February 22, 2024
• On April 23, 2024, it was announced that the $REZ token will be launched on Binance Launchpool.

Market Position

According to DeFiLlama data, Renzo ranks second in the liquidity re-staking track, with a total locked value of (TVL) reaching 3.231 billion USD, distributed across 7 different blockchain networks. This achievement is largely attributed to the investment support from Binance.

Financing Situation

Renzo has publicly disclosed a financing amount of 3.2 million USD. In January 2024, the company completed its seed round financing with a valuation of 25 million USD, led by Maven11 Capital. In February 2024, Binance Labs announced an investment in Renzo, but the specific amount was not disclosed.

Token Economics

$REZ is the native utility and governance token of the Renzo protocol, with a total supply of 10 billion. The initial circulating supply is 1.15 billion (accounting for 11.50% of the total). The token distribution is as follows:

• Binance 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%

Listing Information

$REZ will be listed for spot trading on Binance on April 30, 2024, at 12:00 (UTC). Currently, the token is being mined in the Binance launchpool, with 2.5% of the total supply allocated.

Summary

As a newcomer in the re-staking track, Renzo has attracted a large number of users by simplifying the operational process and offering multiple benefits. However, the project also faces some potential risks, including the risk of ezETH decoupling and risks associated with Eigenlayer and AVS. Investors need to weigh potential rewards against risks and make decisions based on their individual risk preferences.