What is Renzo (REZ)?
Renzo is a platform designed to make liquidity staking easier and more profitable, built to work with EigenLayer. It helps users earn more from their Ethereum by supporting services called Actively Validated Services (AVS), which rely on Ethereum’s security to operate. These services open up new ways to earn rewards while managing risk effectively.
How Does Renzo Work?
Renzo makes use of a straightforward concept. When users deposit their ETH or liquidity staking tokens (LSTs) into the platform, they receive a token called ezETH in return. This token represents their restaked position within the EigenLayer system.
What makes Renzo stand out is the flexibility it offers. Rather than just staking ETH and waiting, users can build personalized restaking strategies. These strategies can involve one or several AVS, each with its own potential rewards and risks.
As more AVS options become available, the number of possible strategies increases rapidly. After selecting a strategy, Renzo uses smart contracts and operator nodes to put it into action. This setup is designed to deliver the best balance between potential rewards and security.
Renzo’s impact goes beyond just boosting staking rewards. By simplifying the process and encouraging cooperation between users and node operators, it helps more people take part in the EigenLayer ecosystem. That benefits not only individual users looking for better returns, but also strengthens Ethereum’s overall infrastructure.
