Business News Report
February 22, 2024

Binance Labs Invests in Renzo to Bolster Liquid Restaking on EigenLayer Ecosystem

In Brief

Binance Labs invests in EigenLayer’s restaking hub Renzo, to boost shared security and restaking risk management on the EigenLayer ecosystem.

Binance Labs Invests in Renzo to Bolster Liquid Restaking on EigenLayer Ecosystem

Venture capital and incubation division of Binance, Binance Labs announced its investment in Renzo, a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer, built to foster the widespread adoption of EigenLayer. The protocol focuses on establishing shared security and risk management standards in restaking, and has now received support from Binance Labs to boost its development.

Renzo Protocol serves as EigenLayer’s Restaking Hub and operates through Ethereum smart contracts facilitating trustless collaboration among stakers, node operators and Actively Validated Services (AVSs). These contracts aim to simplify restaking processes, delegation to node operators and interaction with on-chain service modules, streamlining collaboration for end-users and EigenLayer node operators.

Moreover, Renzo Protocol also secures AVSs and offers higher yields than Ethereum (ETH) staking.

“Renzo’s technology addresses the complexities of Liquid Restaking, enabling more users to participate in Liquid Restaking. At Binance Labs, we are always seeking innovative DeFi projects that introduce novel use cases, and we look forward to witnessing Renzo’s growth in the Liquid Restaking sector,” Yi He, co-founder of Binance and Head of Binance Labs, said in a written statement.

The news comes on the day of EigenLayer securing $100M in funding from Andreessen Horowitz (a16z). According to EigenLayer founder Sreeram Kannan, Andreessen Horowitz was the exclusive supporter in the funding round.

Native ETH Restaking and Cross-Chain Bridging for Enhanced DeFi Accessibility

Restaking originates from Ethereum’s (ETH) staking method, wherein tokens are deposited or “staked” to the network to validate transactions on the blockchain. Restaking empowers emerging projects on the Ethereum blockchain to leverage its security features for their network operations.

Renzo collaborates with institutional-grade node operators to facilitate native ETH restaking, supporting native ETH deposits and LST tokens, such as stETH and wBETH. Users receive ezETH for every LST or ETH deposited on Renzo, representing their restaked position encapsulating all yields and incentives in a single LRT token.

Furthermore, the protocol is collaborating with bridging partners to enable cross-chain bridging of ETH from other Layer 1s (L1s) and Layer 2s (L2s) onto the Eigen layer, simplifying the process for users across different chains.

“The team and I are humbled to have the support of the entire Binance community by bringing thought leadership and DeFi’s best practices to restaking on EigenLayer,” said Lucas Kozinski, founding contributor of Renzo.

Renzo leads in restaking risk and portfolio management, forging partnerships with institutional-grade node operators and closely collaborating with DeFi researchers. The Renzo team comprises DeFi-native founders with extensive experience building and scaling Web3 startups.The team said it prioritizes driving new value and primitives to users through innovative LRT products while emphasizing risk management and security by adhering to current best practices in DeFi on EigenLayer.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.

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Victor Dey
Victor Dey

Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.

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