Renzo

Renzo issues ezETH, a liquid restaking token that abstracts EigenLayer operator and AVS selection so users get diversified restaking exposure from a single deposit.

Acts as a strategy manager on top of EigenLayer — handling operator/AVS selection and reward optimization for ezETH holders.

- ezETH: Renzo's flagship liquid restaking token (LRT). Users deposit ETH or accepted LSTs (e.g. stETH) and mint ezETH, which represents their EigenLayer-restaked position. It is a reward-bearing token (value accrues relative to the underlying rather than rebasing) that stays liquid and composable across DeFi. Native minting is supported on Ethereum, Arbitrum and Base. - REZ (governance token): Renzo's governance token, launched via Binance Launchpool as the 53rd project. Farming ran from April 24, 2024; token trading began April 30, 2024. Used for protocol governance and airdrop-based distribution to early users. - EigenLayer strategy manager / AVS layer: Renzo operates as an EigenLayer strategy manager, abstracting the complexity of selecting node operators and Actively Validated Services (AVSs). It routes restaked ETH to secure AVSs and manages operator delegation on behalf of ezETH holders.

- Reserve / Depeg: ezETH can trade below its underlying ETH value on secondary markets. In April 2024 it depegged ~18% (with DEX prints near $688-$700) amid the REZ airdrop exit rush, cascading into liquidations on leveraged venues. Withdrawal queues and thin on-chain liquidity amplify depeg risk during stress. - Smart Contract: Renzo's contracts, EigenLayer integration and cross-chain bridge introduce code risk. A Code4rena contest (April-May 2024) surfaced 22 unique findings, including 8 high-severity issues, later addressed in a mitigation review. - Counterparty: ezETH holders delegate to node operators and rely on Renzo's operator/AVS selection; misbehavior, downtime or mismanagement by chosen operators can impair rewards or principal. - Systemic: Restaking layers the same ETH across Ethereum consensus and multiple AVSs, so a slashing event or correlated failure in the EigenLayer ecosystem can propagate losses through ezETH and the broader LRT market. - Governance: REZ token distribution drew criticism in April 2024 for allocating a large share to team, investors and advisors and for timing that let Launchpool participants sell ahead of protocol farmers, highlighting governance/insider-alignment risk.

- Money-market fund / yield-bearing deposit receipt: similar — ezETH functions like a transferable, yield-accruing receipt: you deposit a base asset (ETH) and hold a token whose value grows as underlying rewards accrue, while remaining freely transferable and usable as collateral.; differs — Yield is generated by securing decentralized services (Ethereum staking plus EigenLayer AVS restaking) rather than short-term debt instruments; there is no principal guarantee, redemption can be subject to withdrawal queues and slashing, and the token can depeg from its net asset value on secondary markets, as seen in April 2024.