Binance Invests in Renzo to Advance EigenLayer’s Liquid Restaking

Binance Labs, the venture capital and incubation arm of Binance, has recently invested in Renzo. Renzo is a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer, aiming to enhance the liquid restaking ecosystem.

Renzo Protocol: Facilitating Trustless Collaboration

Renzo Protocol, EigenLayer’s restaking hub, is designed to foster the widespread adoption of EigenLayer by facilitating trustless collaboration between node operators, stakers, and Actively Validated Services (AVSs). Through Ethereum smart contracts, Renzo enables users to restake their digital assets, delegate them to node operators, and interact with on-chain service modules, simplifying the process for end-users and EigenLayer node operators alike. Additionally, it offers higher yields compared to Ethereum (ETH) staking.

This investment coincides with EigenLayer’s announcement of securing a $100M funding round from a16z, with venture firm Andreessen Horowitz leading the investment. Despite a downturn in crypto venture funding, this significant investment suggests ongoing confidence in blockchain technology.

Yi He, Co-Founder of Binance and Head of Binance Labs, expressed enthusiasm for Renzo’s technology. He emphasized its role in addressing the complexities of Liquid Restaking and expanding accessibility to a broader user base. He highlighted Binance Labs’ commitment to supporting innovative DeFi projects like Renzo and anticipates its growth within the Liquid Restaking sector.

Renzo’s Collaborative Approach to Liquid Restaking

Renzo works closely with institutional-grade node operators to facilitate native ETH restaking and supports various tokens, including stETH and wBETH. Users depositing assets on Renzo receive ezETH, a liquid restaking token representing their restaked position, encapsulating all yields and incentives in a single LRT token. Renzo is also collaborating with bridging partners to enable cross-chain bridging of ETH from other Layer 1s (L1s) and Layer 2s (L2s) onto the Eigen layer. In this way it will be able to streamline the process for users across different chains.

Renzo prioritizes risk management and security, partnering with institutional-grade node operators and collaborating with DeFi researchers. The team, consisting of DeFi-native founders with extensive experience in Web3 startups, is dedicated to driving value and innovation in the liquid restaking sector while ensuring the highest standards of security and risk management.

Lucas Kozinski, Founding Contributor of Renzo, expressed gratitude for the support from the Binance community. He emphasized the team’s commitment to bringing thought leadership and best practices in DeFi to restaking on EigenLayer.