Renzo serves as a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer, designed to democratize access to Ethereum's restaking ecosystem. The protocol solves the complexity problem inherent in traditional restaking by abstracting technical operations while maximizing yields. Users can deposit ETH or liquid staking tokens to receive ezETH, maintaining liquidity while capturing both staking and restaking rewards.

The protocol targets both retail and institutional users seeking enhanced yields beyond traditional ETH staking, offering a simplified interface to EigenLayer's Actively Validated Services (AVS). Renzo's technological innovation lies in its automated strategy management, cross-chain bridging capabilities, and comprehensive risk management framework that makes restaking accessible to mainstream DeFi participants.

Renzo was founded in 2023 by crypto veterans Lucas Kozinski, James Poole, and Kratik Lodha, who collectively bring over 20 years of Web3 experience. Kozinski previously contributed to Tezos Foundation and TokenSoft, while Poole co-founded TokenSoft and served as its CTO. The team bootstrapped development through personal funds for several months before securing institutional backing.

The protocol launched its mainnet beta in December 2023, becoming one of the first liquid restaking protocols to go live. Major milestones include raising $3.2 million in seed funding led by Maven11 in early 2024, followed by an additional $17 million from Galaxy Ventures and Nova Fund. Binance Labs' strategic investment further validated the protocol's potential. The REZ token launched on April 30, 2024, through Binance Launchpool, reaching an all-time high of $0.278 before experiencing typical post-launch volatility.

Currently, Renzo ranks as the second-largest liquid restaking protocol with over $3.3 billion in Total Value Locked (TVL) across Ethereum and Solana. The protocol has successfully navigated challenges including a notable ezETH de-pegging event in April 2024, demonstrating resilience and effective risk management in the volatile DeFi landscape.

Technology Highlights

Renzo's architecture centers around sophisticated smart contracts that automate restaking strategies across EigenLayer's ecosystem. The protocol features cross-chain bridging capabilities through partnerships with Connext, enabling users to restake from multiple networks including BNB Chain and Arbitrum. The system employs institutional-grade node operators and implements comprehensive risk management through diversified AVS exposure and automated rebalancing mechanisms.

Governance Overview

REZ token holders participate in governance through a decentralized framework covering risk management policies, operator selection, and protocol parameter adjustments. The governance model balances community input with technical expertise, enabling token holders to vote on critical decisions including fee structures, AVS integrations, and treasury management. The protocol maintains a foundation structure with distributed decision-making across core contributors and community members.

Current Performance

Positive Drivers

Renzo benefits from the growing institutional adoption of liquid staking, with over $3.3 billion in TVL demonstrating strong product-market fit. Strategic partnerships with major exchanges like Binance and Coinbase provide enhanced distribution channels. The protocol's first-mover advantage in EigenLayer restaking, combined with superior yields compared to traditional staking, positions it favorably as the restaking market expands. Cross-chain expansion to Solana through ezSOL and BNB Chain integration broadens the addressable market significantly.

Risk Factors

Key risks include smart contract vulnerabilities inherent in complex DeFi protocols and the potential for slashing events from AVS failures. Regulatory uncertainty surrounding liquid staking derivatives could impact adoption. Market competition from established players like Lido and emerging restaking protocols creates pricing pressure. The protocol's dependence on EigenLayer's success introduces systematic risk, while general DeFi market volatility affects token price stability and user participation rates.