Renzo Secures $3.2 Million in Funding to Advance Liquid Restaking on EigenLayer
Renzo, a DeFi protocol, has successfully raised $3.2 million in a seed funding round supported by prominent cryptocurrency-focused funds. This investment will be directed towards the development of Renzo’s liquid restaking protocol, which has recently become operational on EigenLayer.
The seed round, spearheaded by Maven11, also included additional investments from entities like Figment Capital, SevenX, IOSG, and Paper Ventures. The funding comes at a time when the demand for liquid restaking on EigenLayer has reached unprecedented levels. Since its launch in late December, Renzo has attracted over 2,000 users who have collectively deposited $20 million worth of ETH (equivalent to approximately 9,000 ETH) into the protocol.
Lucas Kozinski, a founding member of Renzo, expressed enthusiasm about the new investors, stating, “It’s a pleasure to welcome so many distinguished investors who share our vision of making restaking accessible to everyone. With their support we will make Renzo the most reliable on/off ramp for Ethereum restaking, building upon the new capabilities offered by EigenLayer.”
Balder Bomans, Founder and Managing Partner at Maven11, commented on the investment: “Renzo’s focus on security, risk mitigation and open finance is, in our view, the best way to tackle a liquid and decentralized governance procedure for picking Actively Validated Services (AVS) on Eigenlayer. Renzo delivers risk-adjusted strategies and liquid representations while providing security to restakers.”
Renzo’s protocol, which combines smart contracts and operator nodes, offers automated liquid restaking strategies on EigenLayer. This setup simplifies liquidity management and enables users to participate in Ethereum staking and explore additional restaking opportunities. Renzo allows for the restaking of ETH and Liquid Staking Tokens (LSTs), which can then be used as collateral in DeFi to earn compounded rewards.
Aiming to promote decentralization, Renzo plans to implement a DAO for overseeing operators, AVS restaking strategies, and protocol parameters. Future updates will introduce cross-chain restaking support, integration with lending markets, liquidity aggregators, and vault products, focusing particularly on institutional on/off ramps.
Renzo has introduced ezETH, a restaked ETH position token that users can mint by depositing LSTs or ETH into the platform’s contracts. This fully-backed ERC20 token can be utilized across the DeFi ecosystem to generate rewards in ETH, USDC, and AVS tokens, akin to cbETH and rETH.